Gilroy Declares Impasse in Contract Negotiations with Employee Union

After months of labor contract negotiations, Gilroy has declared an impasse with a union representing more than 100 workers who plan to strike next month.

The impasse boils down to a disagreement over salary with American Federation of State, County and Municipal Employees, Local 101, which is asking for a 4 percent annual wage increase over three years.

On Thursday, the union told the city that its members have authorized a strike for Nov. 9 and 10.

The union represents employees including water utility workers, streets and parks crews, police dispatchers, building inspectors and recreation employees, city officials said.

In a letter Tuesday to city human resources director LeeAnn McPhillips, union business agent John Tucker wrote that 94 percent of members voted against the city’s “last, best and final offer,” and denied a request to settle the negotiations through mediation.

The final offer includes a 2 percent annual wage increase and a 5 percent added contribution to medical benefits, according to interim City Administrator Ed Tewes.

The 2 percent increase has already been applied in the current fiscal year to police, firefighters and the Gilroy Management Association, city officials said.

In the letter Tucker wrote the 2 percent rate is, “not actually equitable considering that management is already above the market average, as well as paid two to three times more than the average front-line employee.”

Officials started negotiations in March and made tentative agreements on other items including city contributions to medical premiums, city officials said.

The city is still honoring the terms of the contract that expired June 30.

Both sides are expected to meet on Tuesday to figure out which workers are considered “essential employees” who won’t be allowed to strike, McPhillips said.

“I am hopeful that the union will work with us to find a solution to the current impasse without jeopardizing service to the community,” Tewes said in a statement Friday.

“There are responsible options still available that would avoid a strike that will adversely impact the community and harm the ongoing relationships with our employees,” Tewes said. “Delays in reaching agreement only delay the time when salary increases might take effect.”

--Bay City News Service, photo via Shutterstock