L.A. County warns of major service cuts as labor union rejects $5,000 bonus offer

Essential public services, including youth programs, parks and legal aid, could face significant cuts if labor negotiations with SEIU Local 721 remain deadlocked Los Angeles County officials warned Tuesday.

The announcement comes as the county and its largest employee union remain at an impasse over wages and benefits, with both sides citing financial pressures and the potential impact on the region’s Black and Latino communities.

In a statement released by the mayor’s office, county leaders said they are unable to meet SEIU 721’s cost-of-living increase demands, citing “profound financial stresses on many fronts,” including settlements related to AB 218 and threatened reductions in federal funding. The county’s latest offer to the union includes a $5,000 one-time bonus this year, a 2% raise and $2,000 bonus in the second year, and a 5% raise in the third year of the contract.

“We are unable to move beyond this offer given the shortage of available resources, and in fact, we will need to make significant cuts in order to afford it,” the statement read. Officials said that if the current proposal is accepted, planned reductions would affect programs such as Parks After Dark, youth job initiatives, beach maintenance, and services in the Public Defender’s office and Probation Department.

SEIU 721, which represents more than 55,000 county workers, has rejected the county’s offer, arguing it does not keep pace with inflation or address chronic understaffing. Many union members serve in roles that directly impact Black and Latino communities, including health care, social services, and youth programs. The union staged a 48-hour strike in April, citing unfair labor practices and alleging the county has not bargained in good faith.

“We’re here because we’re tired of being disrespected and underpaid,” SEIU 721 President David Green said at a recent rally. Union officials have also voiced concern that service cuts would disproportionately affect communities of color, which rely heavily on county programs for recreation, employment and legal support.

County leaders maintain that they must balance fair compensation for employees against the need to avoid a structural deficit and preserve essential services. “We hope that our labor partners will recognize the seriousness of our financial situation and join us in reaching a solution that avoids further cuts to public services,” the county’s statement said.

As negotiations continue, the outcome remains uncertain for both county workers and the communities they serve. Observers note that the dispute highlights broader challenges facing local governments as they navigate rising costs, budget constraints, and the need to support vulnerable populations across Los Angeles.