“The arbitration system, in my opinion, needs to take into consideration the economics of the day – not just whether other services or other areas give (comparable settlements).”
- Ottawa Police Services Board Councillor Eli El Chantiry, The Ottawa Citizen, Aug. 27, 2011

QUEEN’S PARK – Arbitrators will be less inclined to “give away the store” at taxpayers’ expense if they had to deliver clear, written decisions that explain the reasons for their awards, Ontario PC Municipal Affairs Critic Steve Clark said today.

“In recent years, arbitrators have awarded unions excessive settlements, even as Ontario has been saddled with record deficits and a struggling economy,” Clark said. “Communities deserve a full explanation of why they would be forced to raise property taxes to pay the bills that result.”

“We will amend current legislation to require arbitrators to issue written decisions that clearly explain the reasoning for their awards and the specific factors taken into account, such as the impact on taxpayers and current economic conditions.”

As an illustration, Clark referenced the case of Stratford firefighters, awarded retroactive pay increases going back three years at an estimated cost to the municipality of $1.5 million.

“This decision landed with such a bang that Council had to delay the City’s 2012 budget and threaten tax increases to pay for it,” Clark noted.

“That Stratford decision resulted in a 20 per cent pay increase with no explanation in a four-page decision, where one page is the cover page and one is the signature page.”

“The arbitrator did not explain himself at all. That’s wrong. An Ontario PC Government would require arbitrators to justify their actions and take responsibility.”

Clark said the Ontario PC arbitration reform plan would also:

• require arbitrators to respect ability-to-pay for their decisions without assuming that tax increases will cover the cost;
• enforce responsible defined timelines so governments can budget accordingly; and
• help bring public sector paycheques in line with private sector standards.

“This is another step toward reducing the bloated size and cost of government in Dalton McGuinty’s Ontario,” Clark said.

“Doing so will lead to balanced budgets, and balanced budgets will restore prosperity so we can afford the services Ontarians truly care about – such as quality health care and a solid education system.”