Friday, March 28, 2014

Pa. House bill would reform binding arbitration law



Franklin County Republican Rep. Rob Kauffman is taking aim at Act 111, the state law that governs binding arbitration for police and firefighters.

Kauffman has introduced House Bill 1845, which would reform and modernize the law.

“This is not an attempt to end collective bargaining, but rather, inject fairness into a process that is currently tilted toward the unions and against taxpayers,” he said.

The bill proposes several reforms, including public evidentiary hearings, cost sharing for the neutral arbitrator between the employer and the union, and a requirement that arbitration decisions are based on factors relevant to each community, including their ability to pay.

Other highlights include the prohibition of post-retirement health care and pension benefits as subjects of collective bargaining and expanding the pool of neutral arbitrators.

Senate Bill 1111 is the companion bill in the Senate.

“Community after community is falling into fiscal distress,” said Ellen Horan, president and CEO of the Greater Reading Chamber of Commerce and Industry. “The cost of providing essential basic services has skyrocketed due to state mandates, including Act 111. There are nearly 30 chambers of commerce around the state that want to see these important reforms made into law for the sheer reason that without them our communities will find it more difficult to attract and retain the family-sustaining jobs needed to improve our local and state economy.”

Scranton made national news in 2012 over the binding arbitration law when Mayor Chris Doherty cut all city workers’ pay to minimum wage. The move was temporary.

A Chambersburg arbitration case involving its firefighters is another recent example.

Source: Central Penn Business Journal

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