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Home My Public Portal Aboutr 10-079 ~ezo1ufi.ott .of fire ~ormtgIr .of QIarferef :M ~ 1/ 10-79 'C'~ {IJ ~ No. Date of AdoptionMm:h 18, 2010 RESOLUTION URGING THE STATE LEGISLATURE TO REFORM INTEREST ARBITRATION WHEREAS, the interest arbitration process was inlended to fairly and adequately give all due consideration to the inleresl and welfare of the taxpaying public and support local government aims by arriving at award decisions that are equitable to all involved parties, including municipalilies and Police and Fire Department personnel; and WHEREAS, the New Jersey Employer-Employee Relations Act, adopled in 1968, was amended in 1977 to provide for interest arbitration as the statutorily imposed tennmal slep in the collective bargaining process for police and fIre personnel as defIned by the Act; and WHEREAS, the Police and Fire Interesl Arbilration Reform Acl (L. 1995, c 425) was signed into law by Governor Christine Todd Whitman and becarne effeclive on January 10, 1996; and WHEREAS, in 2005, the League of Municipalities' Arbitration Reform Committee suggested a number of Legislature reforms to the Interest Arbitration Process among the changes proposed by the Reform Committee were thaI: (1) the Arbitralor may not award salary increases in excess of the expenditure cap (NJ.S.A. 40A:4-45 et seq.); (2) the Arbitrator's Award may provide for salary increases limited to the budget cap imposed by the State of New Jersey and/or any lawful adjustment adopted by the public employer; and (3) the Arbitrator's Award may provide for salary increases limited to Ihe percentage eslablished by the State or the lawful adjuslment adopted by the public employer, as may be appropriate, on a department line basis; and WHEREAS, in 2007 Ihe Police and Fire Inlerest Arbitration stalule was amended to add new ninth factor of the 4% Tax Levy Cap which resulted in 4 of Ihe 9 slalutory factors in Interest Arbitration addresses the employer's fiscal situation; and WHEREAS, municipalilies are bound by strict fIscal controls embodied in the expenditure limil and lax levy caps and il is the norm ralher than the exception for the state approval arbitrators to award raises for police salaries at rates that exceed the annual caps; and \VHEREAS, binding arbitration awards in excess of the caps forces municipalities to cut other critically needed municipal services, in order to fund salary increases, compOlUlded by pension increases, to police and fire personnel, and cost for police and fire services continue to spiral at an unacceptable rate; and WHEREAS, interest arbitration should be reform to provide Ihat Ihe cost of living and Ihe employer's ability 10 pay should be given greater weight and tile total cosl of the NO. 10-79 20f2 PAGE arbitralor's award; including steps and cosl of living (COLA) increases, should not exceed Ihe cost of living; and WHEREAS, arbitrators should be required 10 evaluate and analyze the overall compensation received by the bargaining unit, including vacations, longevity, holidays, excused leave, medical and pension benefits; and WHEREAS, arbitrators should be required 10 live in New Jersey and Ihe process of selecting the arbitrators and the length of time the Arbitration process takes needs 10 be reviewed; NOW, THEREFORE, BE IT RESOLVED, that the governing body of Ihe Borough of Carteret in the county of Middlesex, Slate of New Jersey hereby urges the New Jersey Stale Legislature to pass legislation conlaining subslantial reforms to the binding arbitration process; and BE IT FURTHER RESOLVED, that a copy of lhis resolution be forwarded to Senator Joseph Vilale, Assemblyman John S. Wisniewski and Assemblyman Craig Coughlin, Ihe New Jersey Slate League ofMumcipalities and the office of Governor Chris Christie. Adopted this 18th day of March, 2010 and certified as a true copy bf the original on March 19th, 2010. KATHLEEN M. BARNEY, MMC Municipal Clerk RECORD OF COUNCIL VOTE COUNCILMAN YES NO NY A.B. COUNCILMAN YES NO NV A.B. l'EllIN.l x KRlM x DIAZ x N6.PLE3 x Dr Ml.SCLO x X X-Indicate VOle AB -Absent NY-Not Voting XOR - Indknlcs Vote 10 Overrule VeIn Adopted at a meeling of the Municipal Council ~~ 2010 ~A a .' $" . e'.e'. . / '. tLERK C jl;'''''''' "," TO: HON DANIEL J REIMAN at 17325414989 02/22/10 13:38 Pages 2 r4NJL~M' New Je~s~y ~t~te League ., of MUnicipalities . WIlliam G. Dressel, Jr., EXECUTIVE DIRECTOR. Michael J. Darcy, CAE, ASSISTANT EXECUTIVE DIRECTOR 222 West Slate Slreel, Trenton. NJ 08608 PHONE: (609) 695-3481 FAX: (609) 695-0151 WEBSITE: www.njslom.com [') 1/2 Mayors Fax Advisory February 22,2010 Re: Interest Arbitration Reform Sample Resolution Dear Mayor: In our Dear Mayor letler of Februarv 9, 2010, regarding Interest Arbitration Refol1n, we asked that you reach out to your State Senator and Assembly representatives and urge them to support the League in moving Interest Arbitration Refol1n forward. Below is a sample resolution to send to your state representative. Resolution Urging tlte St<<le LegisZ<<Illre to Refonn Interest Arbitr<<lion WHEREAS, the interest arbitration process was intended to fairly and adequately give all due consideration to the interest and welfare of the taxpaying public and support local govel1mlent aims by arriving at award decisions that are equitable to all involved parties, including municipalities and Police and Fire Department personnel; and 'VHEREAS, the New Jersey Employer-Employee Relations Act, adopted in 1968, was amended in 1977 to provide for interest arbitration as the statutorily imposed tel1ninal step in the collective bargaining process for police and fire personnel as defined by the Act; and WHEREAS, the Police and Fire Interest Arbitration Refol1n Act (L.1995, c. 425) was signed into law by Govemor Christine Todd Whitman and became effective on January 10, 1996; and WHEREAS, in 2005, the League of Municipalities' Arbitration Refol1n Committee suggested a number of Legislative refol1ns to the Interest Arbitration Process among the changes proposed by the Refol1n Committee were that: (1) the Arbitrator may not award salmy increases in excess of the expenditure cap (N.J.S.A. 40A:4-45 et seq.); (2) the Arbitrator's Award may provide for salary increases limited to the budget cap imposed by the State of New Jersey al1g(or any lawful adjustment adopted by the public employer; and (3) the Arbitrator's award may provide for salary increases limited to the percentage established by the State or the lawful adjustulent adopted by the public employer, as may be appropriate, on a department line basis; and \VHEREAS, in 2007 the Police and Fire Interest Arbitration statute was amended to add a new ninth factor of the 4% Tax Levy Cap which resulted in 4 of the 9 statutory factors in Interest Arbitration addresses the employer's fiscal situation; and 2/22/2010 13:39 TO: HON DANIEL J REII1AN at 17325414989 02/22/10 13:38 Pages 2 D 2/2 'VHEREAS, municipalities are bound by strict fiscal controls embodied in the expenditure limit and tax levy caps and it is the nonn rather than the exception for state approved arbitrators to award raises for police salaries at rates that exceed the annual caps; and WHEREAS, binding arbitration awards in excess of the caps forces municipalities to cut other critically needed municipal services, in order to fillld salary increases, compounded by pension increases, to police and fire personnel, and cost for police and fire services continue to spiral at an unacceptable rate; and 'VHEREAS, the state approved interest binding arbitration process is inconsistent with the State cap laws and is unfair to municipalities attempting to control property taxes through fisca.l responsibil~'ty; and "-~ ~ / -~-~ ~----- / ,~..=. ----- // ^------- ~ '----""'~--,-~"- WHEREAS, interest arbitration should be retmm to provide that the cost of living and the employer's ability to pay should be given greater weight and the total costs of the arbitrator's award, including steps and cost of living (COLA) increases, should not exceed the cost of living; and 'VHEREAS, arbitrators should be required to evaluate and analyze the total cost of the salaries and benefits, including step increases, and must provide a detailed line item analysis and explanation of the costs in the award; and WHEREAS, arbitrators must also evaluate and analyze the overall compensation received by the bargaining unit, including vacations, longevity, holidays, excused leave, medical and pension benefits; and 'VHEREAS, arbitrators should be required to live in New Jersey and the process of selecting the arbitrators and the length of time the Arbitration process takes needs to be reviewed; NOW, THEREFORE, BE IT RESOLVED, that the goveming body of the (insert municipality) in the county of (insert county), State of New Jersey hereby urges the New Jersey State Legislature to pass legislation containing substantial refonns to the binding arbitration process; and BE IT FURTHER RESOLVED, that a copy of this resolution be forwarded to (fill in State Senator, Assembly representatives), the New Jersey State League of Municipalities and the Office of the Govemor. Vel)' truly yours .' William B. Dressel, Jr. Executive Director lJ r. ,,< ./ If li./l ot (\ ,., ;1' I. (,Ii')} (.~ / vJ ). / .' G'} ;{\ \'.1- I . o\O( ~)}jl~ ' \ i' \ . r '\\1 Ie}' , ", "f)\ y.'\ t; '., .,\:(j (\ ./ \ "IV ,~i>