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June 3, 2008

Binding Arbitration Revisions Could Prove Costly



Dear Mayor:

On Thursday, June 4 at 2:00 P.M., the Assembly Law and Public Safety Committee will consider A-2243, which would place 60 day limits on the mediation and fact-finding phases of police and fire contract arbitration. It would also require an arbitrator or panel of arbitrators to issue an award within 120 days of selection or assignment, which limit could only be extended by 90 days, by mutual consent of the parties.

Though we can see a benefit in enforcing the time limit on the arbitrator at the end of the process, we cannot support the proposed limits on mediation and fact-finding at the beginning. Those limits place an emphasis on timely resolution of disputes, at the possible expense of the interests of our property taxpayers. They would limit the ability of an arbitrator to use time as a tool to encourage negotiation and compromise on important aspects of a settlement. And they could compromise the fact-finding process, limit the ability of both parties to digest the results of that process, and lead to the inclusion of mutually disagreeable provisions in the final settlement.

Given the low percentage of cases that are ultimately resolved by a binding interest arbitration award, we see no need to advance these changes at this time. Accordingly, we oppose A-2243. We urge you to contact your State Legislators and inform them of the problems presented by this bill.  If you have any questions please contact Jon Moran at (609) 695-3481 ext. 121.

                                                                        Very truly yours,


                                                                        William G. Dressel, Jr.
                                          Executive Director



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