The threatened strike by the union workers in Palo Alto has the potential to sour labor relations and the business environment in Palo Alto for years to come. At a time when Palo Alto is losing businesses at an alarming rate, a long, drawn out strike by our workers is unwelcome to say the least. Unfortunately, the situation has become so acrimonious that it may already be a no-win situation for both parties.

On the one hand, the Union feels that it is being unfairly asked to forfeit hard-earned gains in wages and benefits that have been negotiated over many years, and its workers are being asked to cover an unduly large portion (almost one-third) of the deficit. The City, on the other hand, states that the workers' wages and benefits are greater than the market rate, and that economic conditions demand that the workers contribute with everyone else in helping to restore the City's financial health.

It is difficult to comment on this regrettable situation without being in the room with the negotiators and knowing exactly what is being offered and said. Unfortunately, the comments and stories we read in the newspaper are now so tinged with partisanship that it is impossible to know the truth. The Union is accused of not being forthcoming in flyers by attributing its own statements to the newspapers and in making accusations about secret funds the City is maintaining. The City, on the other hand, appears to be intending to, in essence, break the Union and all at once erase much of the Union's gains in wages and benefits from past contract negotiations, as if to make up for its ineffective bargaining in prior negotiations.

As a corporate attorney, I have spent much of my professional life negotiating agreements and transactions. I believe it is imperative to maintain open and respectful lines of communication in such a process. The failure to achieve a negotiated settlement will be evidence of the failure of all parties involved. While it is my sincere hope that this controversy will not be left to the new City Council, I am fearful that if feelings and sentiments do not settle down, the next Council will, in fact, be called upon to resolve this situation.