Mayor Ed Lee joined members of Unite Here Local 2 and management from the Hilton San Francisco Union Square this morning to announce the five-year agreement.
Hilton officials have agreed to increase compensation by more than 4 percent annually for the 750 hotel workers at the 1,900-room hotel at 333 O'Farrell St.
The agreement comes in advance of the August expiration of the current contract with the union, which represents more than 12,000 hospitality and food service workers in San Francisco and San Mateo counties.
"The quality of our hotels is one of the mainstays of why we're such a successful tourist center," the mayor said, adding that a stable relationship between the workers and management "contributes greatly to the quality of service."
Mike Casey, president of Unite Here Local 2, said he hopes the agreement will serve as an example to other hotel companies that are still in ongoing negotiations with the union.
"While the rest of the industry is preparing for a major war with our union ... the Hilton Corporation said maybe there's a way we can avoid the drama and turmoil that has been brought to this city all too frequently," Casey said.
He said that along with increasing pay, the settlement also strengthens job security for workers by adding anti-subcontracting language in the event that the hotel is sold.
Michael Dunne, general manager of Hilton San Francisco Union Square, said "This deal is good for the city of San Francisco. It takes care of our team members and takes care of our guests."
The agreement was ratified on Friday by Local 2 members, including Guadalupe Chavez, a room attendant and union executive board member who said she has worked at the hotel for 32 years.
"I'm very pleased with the settlement," Chavez said. "We are happy to know that our health care and wages are secured for the next five years."