INSTITUTIONAL WAGE STANDARDS IN PUBLIC SECTOR INTEREST ARBITRATION

DAVID A. DILTS
MASHAALAH RAHNAMA-MOGHADAM
TADESSA MENGESTU


DOI: 10.2190/7M2F-HRBH-354C-A99E

Abstract

For negotiations that are at impasse most public sector collective bargaining laws require interest arbitration. Typically, the only issue remaining at impasse in public sector negotiations is the economic package, and the most common economic issue is that of wages. Because the strike is proscribed in most jurisdictions, and the labor market is imperfect, a theory of second bets has emerged in settlement of these matters. Rather than relying on market forces, the parties must rely on interest arbitrators and their applications of the institutional wage standards to the record of evidence to determine what the appropriate wage shall be. This article reviews these institutional wage standards and some of the difficulties in providing evidence concerning these matters.

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