NY SHOULD FOLLOW NJ AND REFORM ARBITRATION PROCESS WHICH SETS SALARIES FOR EMPLOYEES

NEW YORK SHOULD FOLLOW THE EXAMPLE OF NEW JERSEY AND APPROVE A BIPARTISAN REFORM PACKAGE THAT WOULD CAP ARBITRATION AWARDS


I would like to urge Governor Cuomo and members of the New York State Legislature to do what New Jersey did just over a year ago and approve arbitration reform legislation. This reform would help local governments halt property taxes.



The bipartisan legislation that was approved by Democratic lawmakers and the Republican Governor of New Jersey recognizes the fact that local officials need to have some control of setting salaries of all their employees - especially if the state has a property tax cap law on the books. Currently, in New York State, if local elected officials and the unions representing police/firefighters can't agree on a contract, an arbitration panel is granted the power to impose a salary hike that local officials have to live with. These arbitration awards (large salary increases) are much higher than increases other employees (who are not subject to arbitration) receive. The bipartisan arbitration agreement signed into law by the NJ Governor matches the 2 percent annual cap on property tax hikes in that state. Among the highlights of the New Jersey law:



· Provides a cap of 2 percent on arbitration awards that will be applied to all salary items, such as the cost of across the board and cost of living increases, step increment payments and longevity pay.

· Mandates no exceptions for additional non-salary economic terms moving forward. The agreement creates a prohibition on allowing non-salary economic issues to be arbitrated above the cap, unless already included in an existing contract. All salary items are subject to a maximum 2 percent cap.

· Eliminates accruing labor costs by creating a fast track arbitration process. The agreement transforms the system by putting in place concrete deadlines to help eliminate delays in the arbitration process, from contract negotiation to the receipt of the actual award. Traditionally, once a contract expires, labor costs continue to mount until a new contract is reached. Enforcing deadlines and speeding up the process will ensure timely implementation of new contracts and the cap on interest arbitration awards. There will be a concrete deadline of 45 days from the filing of a request for interest arbitration to the date of award, without any extensions. All appeals must be decided within 30 days, if arbitrators do not comply with the 45 day deadline, they will be penalized financially.

· Caps arbitrator pay. The agreement will cap arbitrator compensation at $1,000 per day and $7,500 per case. Capping arbitrator pay will further incentivize speedy resolution of arbitration cases.

· Randomizes the selection of arbitrators.



I urge New York State to follow the example of New Jersey and to adopt arbitration reforms. It will make it easier for local governments to keep taxes down and to comply with the new tax cap legislation.



Sincerely,







Paul J. Feiner

Greenburgh Town Supervisor