Naugatuck Legislators Propose Cap on Binding Arbitration Awards

Posted on January 26, 2017

Facebooktwittermail

HARTFORDState Representatives David Labriola (R-131) and Rosa C. Rebimbas (R-70) have again, as in previous sessions, proposed legislation to the Labor and Public Employees Committee asking for consideration regarding amendments to the collective bargaining statues to limit binding arbitration awards for increased wages to reflect, or stay within, the Consumer Price Index (CPI).

Binding Arbitration is the process by which collective bargaining disputes are settled amongst three judges. These disputes typically arise between a town and a union over negotiations of a new or expired contract outlining benefits and wages.

The CPI, according to the CT Department of Labor, is a measure of the average change in prices of goods and services over time in a fixed market. In other words, it is the average cost of living for each Connecticut resident. The aim of this bill is therefore to help stabilize town budgets and maintain an equal check and balance between income and spending.

“By indexing binding arbitration awards to the Consumer Price Index local municipalities will be better able to handle any potential additional expenses incurred through the arbitration award process,” Rep. Rebimbas said. “Local budgets are set months in advance and this legislation will protect towns and limit the damage from unreasonable contract awards that can cause serious budgetary impact.

“We have the citizens’ best interests at heart with this bill and I hope it comes up for a vote on the House Floor,” said Rep. Labriola. “The first step, however, is to see it scheduled for a committee public hearing. The people deserve an opportunity to testify on this proposal.”

The legislators have met with many local elected officials who have voiced support for this legislation, and they look forward to a public hearing on the issue.

X