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CBS News
01-07-2025
- Business
- CBS News
How California state workers's delayed return to office will impact struggling Sacramento businesses
Many Downtown Sacramento business owners are surprised after the governor's mandate for state workers to return to the office four days a week starting on July 1 is now on pause. The delay comes after months of state workers picketing and labor unions negotiating. "Feeling like the stress has been lifted and feeling like there's more money in their pocket," said Cecilia Wilson, who works for the Department of Education and is on the board of SEIU 1000, the state's largest labor union. More money may be staying in state workers' pockets, but not in the pockets of struggling downtown business owners. Many of these businesses over the past few months have been gearing up for a business boom starting July 1, but now it's looking like it may be a business bust. This comes after over five years of struggling with a quieter downtown since most state workers went remote during the pandemic. "We are thriving off of them," said Cheryl Hernandez, co-owner of Bumble Bear Coffee. "That is 98% of our customers. These two-days-a-week people." Local developer John Vignocchi told CBS13 that state workers staying home is bad for existing businesses and for attracting new ones. "If you love Sacramento, this is not a good thing," said Vignocchi. "It kind of shows who runs the government. Certainly not Newsom, not legislatures or those who said they want the workers back five years after they vacated." Gov. Gavin Newsom has stayed strong in his stance on the return-to-office mandate but has now gone silent with the last-minute switch-up. "I think it's important for people to collaborate where people get the benefits, particularly young employees. mentorship and support," Newsom said during a press conference back in May. Labor unions reached an agreement that will pause the return to office mandate four days a week until July 1, 2026. "Even though it will impact my business, I will still be on the state workers' side," said Hernandez. "It does give the opportunity to do something outside of the box to attract people." CBS13 reached out to the governor's office for comment. It directed us to Cal HR to respond on the administration's behalf. It gave this statement:
CBS News
05-03-2025
- Business
- CBS News
California state workers critical of Gov. Newsom's return-to-office mandate
SACRAMENTO — State workers are already showing signs of resistance to California Gov. Gavin Newsom's new mandate to return to the office at least four days per week beginning July 1. Gayle Jamerson is a decades-long state worker who said that returning to her office four days per week will cost her hundreds of dollars a month. The existing hybrid work model for state workers, implemented by the governor last June, requires at least two in-office days per week. "I would say at least $400 to $500," Jamerson said. "So yesterday, I canceled my retirement contribution anticipating these changes." Amber Grace has worked for the state for two years. "I'm concerned with the increased carbon emissions, traffic," Grace said. "It's unnecessary. Why? The work is being completed." California's largest state workers' union, SEIU 1000, called the executive order out of touch and unnecessary and wants it reversed. "State employees should not be used as a political pawn and really, that seems like the only reason we would be sent back," SEIU 1000 President Anica Walls said. Democratic political strategist Steve Maviglio, often a critic of Newsom, said this executive order is likely aimed at a national audience. President Trump issued an executive order for federal workers to return to the office five days a week. San Francisco's new mayor, Daniel Lurie, announced a four-day-return-to-office order for city workers last month. "First of all, you have to put everything Governor Newsom does in the prism of future presidential politics. He's seeing mayors, governors, and even the President of the United States require workers to go back to work in an office," Maviglio said. "And this fits into the box of having the state government be more efficient, which is certainly a topic of the day." "If I could retire now, I would," Jamerson said. "I would totally be out the door as soon as we had to come back."
