NCJ Number
95966
Journal
Labor Law Journal Volume: 35 Issue: 2 Dated: (February 1984) Pages: 123-126
Date Published
1984
Length
4 pages
Annotation
A public-sector arbitrator must assess the factors underlying a public employer's claim not to have the ability to pay a specific union demand for an employee wage increase.
Abstract
A neutral cannot incorporate the ability-to-pay standard into his/her decisional matrix without determining the appropriate level and character of public services in a community. When a public employer asserts an inability to pay the wage increase demanded by a union, it may mean the public employer cannot pay the increase and also maintain public services at the current level without increasing revenue. This unambiguous definition of ability-to-pay is irrelevant, because it assumes that the current level of services and rate of taxation are 'correct.' it may essentially nullify all other standards for a 'just and reasonable' determination of wages that neutrals may be legally required to consider. The relevant claim is that the union's demands relevant claim is that the union's demands entail costs the community cannot reasonably be asked to bear or tradeoffs that the citizenry cannot reasonably be asked to make. The instances where there are absolute external limitations on what wage rates a public employer can pay are difficult to identify. Typically, the neutral faced with an ability-to-pay argument must evaluate those critical tradeoffs generally reserved for citizens and their elected representatives.