Gilroy
– Talks between the city and the fire union remain stalled as
negotiators have yet to select an arbitrator and create a timeline
for what will be a months-long binding arbitration process.
By Lori Stuenkel
Gilroy – Talks between the city and the fire union remain stalled as negotiators have yet to select an arbitrator and create a timeline for what will be a months-long binding arbitration process.
“We are in the process of selection for choosing an arbitrator,” said City Administrator Jay Baksa.
The city and Fire Local 2805 began contract negotiations more than eight months ago, and in late February firefighters declared an impasse, triggering binding arbitration. Soon after, the city and fire union both selected a representative who, along with a third neutral arbitrator, will make up the arbitration panel.
Ken Heredia, the firefighters’ representative, said Monday he and Charles Sakai, the city’s representative, were dissatisfied with a list of seven names of independent arbitrators sent to them by the state Conciliation Service.
Both sides have agreed to request a second list, Heredia said.
“Our initial list from the state didn’t have enough choices on there of people who had experience in public sector – public safety – labor law,” Heredia said.
The second list should arrive in about 10 days, he said. If Sakai and Heredia cannot agree on one of the names from the list, each will take turns striking names until only one is left. The selection should take a matter of days, Heredia said.
In the two months since negotiations reached impasse, the city and Local 2805 have not resumed talks on contract issues, although they may at any time during arbitration.
“Right now, they’ve been spending most of their time agreeing on an arbitrator and process,” Baksa said.
The 36-member fire union is asking for a retirement package that would allow firefighters to retire at age 50 with 90 percent of their salary. Called the “3 at 50,” the program already obtained by the police union provides three percent of the last year’s salary for every year worked.
Firefighters have also asked for wage increases that could amount to 9 percent by 2007, more discretionary vacation, paid time off for union-related business, fully-paid health care premiums and a post-retirement cash bonus for fulfilling certain career milestones.
“It was our position a couple months ago that we never gave our last best offer,” Heredia said. “The city gave its last best offer and that was unacceptable.”
The city’s final offer included a program that would allow firefighters to retire at age 55 with 90 percent of their salary, no wage increases, a cap on city contributions to health care premiums and a roll-back of minimum staffing requirements that put four firefighters on engines.
The minimum staffing was obtained by firefighters the only other time negotiations in Gilroy went to arbitration, in 2000. The arbitration process took between three and four months that year, Baksa said.
“This is a rather lengthy process, so have patience,” he said.
Hearings for the arbitration panel will not be scheduled until the third, independent party is chosen.
“Then they’ll figure out what their time frame should be: How many days, lengths of days – those logistics,” Baksa said.
The panel will hold hearings in which both the city and fire union will present the issues and, taking into account wage considerations, the city’s financial situation, and other factors, the panel will choose one final offer.
An agreement outside of binding arbitration may be reached even up to 10 days after the final settlement is delivered to both parties.
Local 2805 has argued for a retirement and benefits package it says is equal to that of Gilroy police, who in 2001 negotiated for 3 at 50. Since the program took effect, the city’s public safety retirement budget, which includes both firefighters and police, has spiked from nearly $900,000 in 2001 to more than $3.2 million for the next fiscal year.
Officials say they cannot afford the demands that they estimate would amount to a 25 percent increase in total compensation over three years.
The city will pay $560,000 in overtime this fiscal year, which bumps earning for 10 firefighters to more than $100,000 annually, not counting benefits.
Process continues
– Charles Sakai, representing the city, and Ken Heredia, representing firefighters, are selecting an arbitrator to chair the three-person panel.
– They will select one from a list of arbitrators provided by the state by eliminating names one at a time. There is no set time limit.
– Panel will set deadlines for each side to submit last offer and schedule hearings based on arbitrator’s availability. Officials expect the process to take months.
– The panel will mail the settlement chosen to the city and union, which have 10 days to review it or negotiate another.
– Negotiations may resume at any point, in hopes of achieving a settlement.
