Jennifer Friesen, IAM business representative, addresses the Norwalk City Council advocating for better wages for bargaining unit members, alongside union supporters, during public comment on Tuesday, September 2. (Photo by Vince Medina)

Over two dozen members and supporters of the International Association of Machinists (IAM) Union rallied at the Norwalk city council meeting on Tuesday, expressing their frustrations over the impasse in negotiations between the union and the city’s management team.

Union representatives accuse the city of bad faith tactics, including bypassing proper channels by emailing staff about an impasse without declaring the impasse with the union officially and the city’s withholding of budget and classification study information. These accusations have led to two pending charges with the Public Employment Relations Board (PERB).

The IAM Union, which represents approximately 565 bargaining unit members, this includes City employees who are full-time and part-time across departments including public works, recreation, transit, and maintenance, has been operating without a contract since the previous agreement expired on June 30.

Members voted overwhelmingly on Aug. 14 to authorize a strike and reject the city’s “last, best, and final offer,” following months of talks that began in January. A brief session on Aug. 27 at city hall lasted just 16 minutes, with union officials claiming city negotiators, labor consultant and chief negotiator Peter Nguyen from Leibert Cassiey Whitmore and Deputy City Manager Ozzie Ramos, refused further dialogue.

“We’ve done everything to meet them halfway, but they’re not following the process,” said Jennifer Friesen, IAM business representative. “The city manager emailed staff declaring impasse, but the chief negotiator must notify us in writing. They’re trying to negotiate directly with the membership, instead of keeping the discussions at the table, and that’s where it becomes surface party. They’re trying to circumvent the process.”

The breakdown comes amid growing frustration over stagnant wages and rising healthcare costs. Friesen said the union is demanding equity adjustments starting at a minimum 2% across-the-board wage increase to facilitate an agreement.

The union’s independent analysis, based on data from six comparable cities (Carson, Torrance, Downey, Pico Rivera, Gardena, and Whittier), shows Norwalk employees earning about 6% below market rates on average, with some classifications lagging by up to 30%. Union representatives compiled the study manually, cross-referencing job duties from public sources like city websites and Neogov postings.

The city’s consultant-led study, conducted by CPS HR Consulting presented to the City Council on June 17, analyzed benchmark classifications across the same comparable cities.

The study found that 36% of benchmarked roles lagged the market based on midpoint salaries, while 64% were at or above market. It highlighted limitations in the current 5-step salary schedule, including inconsistent grade separations, limited wage growth, and 57% of employees being “topped out” with no further progression.

The city’s study recommended a new 9-step structure with 3.33% increments based on eligibility during their evaluation between steps, a 30% bandwidth from minimum to maximum per grade, and 5% separations between grades.

However, the union noted the 3.33% steps are not guaranteed, potentially subject to delays, bias, or denial if employee evaluations are not passed. The step increase is performance-based, meaning advancement depends on employee evaluations, not automatic or guaranteed progression.

Friesen cited examples like city employee Jesse Hernandez, who is reportedly over a year behind on reviews and steps despite the city claiming all are up to date.

However, union data on the proposed structure reveals minimal raises for most workers: 22% of workers (126 of 565 members) would see less than 1% wage increases, 40% of workers (229 of 565 members) would receive less than 2% wage increase.

Union representatives including Ashley Gunckel, the IAM international representative, raised several concerns about the city’s study, including a lack of transparency in its methodology and calculations, which the union said were not fully shared despite requests during negotiations.

They argue the study only benchmarked about 44 classifications, with most focused on mid-management roles outside the bargaining unit, and included obsolete positions no longer recruited in Norwalk.

The union is looking for better healthcare costs for its members.

Employees incur out-of-pocket costs averaging $800 per month for family coverage through providers such as Kaiser and Anthem Blue Cross, with projections of an 8% increase in 2026, according to CalPERS.

The union proposed capping employee healthcare increases at $25 per month to mitigate the hikes, but the city also rejected the idea.

City management, including department directors, pay no out-of-pocket for their coverage, which union members said they effectively subsidize, according to city data.

City Manager Jesus Gomez earns approximately $340,000 annually with full benefits, according to the most available data.

Directors recently received 10% to 40% increases, a nine-step salary structure, and $500 wellness stipend—contrasting sharply with the minimal offers to rank-and-file employees.

According to the unionThe city has cited fears of an impending recession and potential impacts from President Donald Trump’s administration and federal government policies as reasons for their stance.

“After eight months of negotiations, the City of Norwalk has reached an impasse with the employee union after presenting the best and final offer,” a city representative stated. “As part of the next step in the process, the City is pursuing third-party mediation to help both parties move toward resolution. We want to reassure residents that critical City services will remain. The City remains hopeful that a collaborative outcome will be achieved.”

However, the union reports no notification from the State Mediation and Conciliation Service (SMCS) about mediation filing, leaving them in “limbo.”

“We want to resolve this at the table or through mediation,” said Gunckel. “But if they keep circumventing the process, we’ll have no choice but to strike. We don’t want to burden our members financially, but the city’s not moving.”

A strike could disrupt transit services to Norwalk, Whittier, and Bellflower; recreation programs; senior centers; and street maintenance. Workers like bus operator Robert Nunez and maintenance worker Jesse Hernandez, long-time residents, emphasize their community commitment despite frustrations.

“The City of Norwalk reassures residents that essential services will continue without interruption as labor negotiations with the employee union proceed,” the city of Norwalk wrote in a statement. “After eight months of discussions, the parties did not reach agreement and the City is beginning the formal impasse process. The City values the important work of its employees and remains committed to good-faith negotiations.”

“Our goal is a fair and balanced resolution that supports employees, maintains fiscal responsibility, and protects the high level of service our residents and businesses expect.”

Norwalk workers' union, city management locked in stalemate