When All Else Fails…When All Else Fails…

Iowa Professional Fire FightersUniversity of Iowa Labor Center

Chapter 20 Impasse ProceduresReplaces the right to strike.Intended to be a fair way of resolving

bargaining disputes, based on facts and public interest.

Two-step processFact-findingArbitration

Overall standard is, “Whose position is most reasonable?”

ESP StrategyESP StrategyThere is some “magic number” that the

arbitrator will be think is a reasonable pay increase. If we had ESP we would always win at arbitration, by adopting this bargaining plan.

Make an initial offer that leaves you some room to move. Wait to see what management does.

If you are closer to that number, stop. If management moves enough to get closer, you have to move again.

Whoever is closer when the moving stops, wins.

Without ESPWithout ESPSystem is designed to force parties to settle, by

punishing the party that is most unreasonable.If you don’t have ESP the best way to win is to

adopt a position that you believe a neutral will think is “reasonable”, based on the research and information that you have gathered.

The process pushes parties toward the middle.Each year more than 95% of all Iowa public

sector contracts are settled voluntarily.

Should Be Last ResortShould Be Last ResortIf you are in an impasse

hearing, it means that at least one party is misinformed or unreasonable.

You are putting your fate in the hands of a third-party who knows nothing about you and won’t have to live with the result.

Who decides these cases?LawyersProfessorsRetired management

and (a very few) retired union reps

Retired judges

Good for us?

How are they picked?List from PERBTake turns removing one nameLeast objectionable person is selected

Problems?

• Neutral person, selected (and paid) by parties from PERB list

• Holds “hearing”, considers information submitted by parties

• Issues written decision• Makes recommendation on each issue

(topic of bargaining)• Can select union or management position

or (usually) something in between• Is not binding unless accepted by both

parties• Can be waived if both parties agree

Neutral person, selected (and paid) by parties from PERB list

Holds “hearing”, considers information submitted by parties

Issues written decisionMakes decision on each issue (topic of bargaining)Can only select union or management position or

fact-finder’s recommendation (if there was one)Is final and binding on both partiesNo appeal process, unless does not comply with

law

Tactical Differences?Tactical Differences?Fact-finding: Danger in being too reasonable.Good way to test new ideas.Useful if your own team is unreasonable.

Arbitration:Danger in being too unreasonable.Bad place to try new ideas.Useful if other side is being unreasonable.

Arbitration HearingFinal Offer ArbitrationArbitrator selects the most reasonable

proposal Issue by Issue (each topic)

Criteria for Arbitrators Section 20.22(9)1.Bargaining history2.Comparability3.Public interest4.Ability to pay5.Other relevant factors

1. Bargaining HistoryPast collective bargaining contracts

between the parties including the bargaining that led up to such contracts.

Examples?

2. ComparabilityComparison of wages, hours and conditions

of employment of the involved public employees with those of other public employees doing comparable work, giving consideration to factors peculiar to the area and classifications involved.

Comparability GroupOther cities that are comparable (similar) to

yours.What makes an employer comparable?Does your city have any “peculiar factors”?How about your co-workers? Are they

peculiar?

ComparabilityInternal v. External

3. Public InterestThe interests and welfare of the public,

the ability of the public employer to finance economic adjustments and the effect of such adjustments on the normal standard of services.

Examples?

4. Ability to PayThe power of the public employer to levy

taxes and appropriate funds for the conduct of its operations.

5. Other relevant factors?Anything you want to try…

Final OffersFinal OffersYour final offer can’t be more “reasonable”

than what you have offered at the table.Example: The last time the parties met, the

city offered a 2.5% increase. The union offered to accept a 4.0% increase.

The city’s final offer can’t be more than 2.5%, but could be less. The union’s final offer can’t be less than 4.0% but could be more.

Final OffersFinal OffersLanguage proposals can’t be something that

the other side hasn’t seen previously.However, you can make a nearly last minute

offer in “bargaining” and then make the same offer as your “final offer”.

Arbitration HearingNot much statutory detail.Helps to have agreed upon procedure.

ExhibitsWitnessesOrder of proof, etc.