Gilroy’s Jay Baksa to undergo questioning before arbitration
Gilroy – The city’s top manager will undergo tough questioning next week as fire union officials seek to justify contract demands before an outside arbitrator.

The last two days of hearings to sort out a year-long labor dispute are scheduled for Monday and Wednesday and are expected to be dominated by testimony and questioning of City Administrator Jay Baksa.

For two decades, Baksa has crafted the city’s annual budget for council approval. He is among a growing choir of City Hall officials warning that Gilroy cannot afford the union’s salary and benefit demands.

“I don’t think I can be a neutral witness, but certainly one that has more knowledge of the city budget than anybody else,” Baksa said of his upcoming testimony.

City officials say that demands by Fire Local #2805 would translate to a $1.1 million hit to the budget, if granted in full by the arbitrator.

The 36-member union calls Baksa’s warnings an alarmist tactic aimed at denying them benefits already enjoyed by police officers.

“We’re going to take him to task,” fire union president Art Amaro said. “The last time we went to arbitration (in 2001) he said the city’s going to have to lay off people because we were awarded minimum staffing levels. That wasn’t true.”

Union officials claim that returns from state pension fund investments will cover the increased cost of their demands.

The city and union arguments will be weighed by arbitrator John Kagel of Palo Alto. In coming months, the three-person panel Kagel heads will issue a binding decision on contract demands. The two sides are free to strike a settlement outside the arbitration process before Kagel’s final decision.

The city and fire union have independently settled 14 contract issues since the hearing process began in January, but five major items remain, according to Human Resources Director LeeAnn McPhillips. Fire officials confirmed that those include the request for a retirement package that would allow firefighters to retire at age 50 with 90 percent of pay.

Officials granted police that retirement package five years ago, a decision they now call a mistake.

Hearings

– What: Arbitration hearings between City Hall and Fire Local #2805

– When: 9:15am, March 6 and 8

– Where: Council Chambers at City Hall, 7351 Rosanna St.

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