Posts tagged interest arbitration
Faster is Not Always Better: House Passes Bill Seeking Radical Change in First Contract Bargaining
June 17, 2026 // The bill also raises questions about the lawfulness of strikes and lockouts during these first contract negotiations. Typically, where parties agree to interest arbitration (or where it exists in the public sector) it is premised on a mutual commitment of labor peace, i.e., the union will not go on strike, and the employer will not lock employees out while negotiations are ongoing and the arbitration is pending. However, in the private sector and in the absence of such a mutual commitment, both such economic weapons may be used offensively in furtherance of a party’s bargaining demand. The FLCA does not explain if or how a party may exercise such an economic weapon in furtherance of their bargaining position if the dispute will be submitted to an FMCS panel for binding interest arbitration. Equally troubling is the FLCA’s potential impact on unilateral implementation. Unilateral implementation upon reaching a good-faith bargaining impasse has long been a vital bargaining tool for employers. The possibility of implementing terms when negotiations stall has been an effective tool to encourage the parties to continue making movement towards the other. Eliminating this option will alter bargaining leverage and strategies particularly in successor contracts where the FLCA’s temporal framework does not apply.
Faster Labor Contracts Act would silence workers’ voices and empower bureaucrats
May 28, 2026 // While forced arbitration for union contracts would be new in the private sector, there is a corollary in the public sector called “interest arbitration” that some states most frequently apply to police and firefighter labor disputes. It’s not entirely analogous because a government that imposes forced arbitration is also the employer and thus part of the contract negotiations. Moreover, governments aren’t subject to the same bottom line as private sector companies because, unlike businesses, states generally can’t go bankrupt. Nevertheless, interest arbitration contracts have burdened state and local governments, arguably contributing to rising property tax rates in New Jersey, unfunded pensions in Chicago, and even municipal bankruptcy in Detroit.