On Friday, February 9th, 2018, New Jersey State Senator Declan O’Scanlon introduced legislation that would reinstate New Jersey’s interest arbitration salary cap that limits two-percent (2%) annual salary increases that can be awarded when disputed police and fire contracts enter the process of binding arbitration.

O’ Scanlon stated on his website that “One of the biggest mistakes made by the Legislature in recent memory was allowing the arbitration cap to expire at the end of 2017.  If we don’t act quickly to reinstate the arbitration cap we’ll quickly see arbitration awards that exceed the 2% tax cap and the beginning of the evisceration of that essential property tax control. As the noose tightens, we’ll see labor costs skyrocket over time and eat up local budgets at the exp

ense of other important programs and services. That would likely lead to the failure of New Jersey’s two-percent property tax cap. Let me be clear, any legislator who doesn’t back this bill is standing for higher property taxes. One cannot legitimately say he or she backs property tax caps without embracing this bill.”

O’Scanlon’s new legislation, S-1858, would implement the following changes to police and fire interest arbitration:

  • Making the interest arbitration cap permanent.
  • Maintaining that arbitrators have 90 days to render a decision.
  • Maintaining the 14-day deadline to file an appeal and 60-day period for a final PERC decision.
  • Keeping the compensation of arbitrators capped at $10,000.
  • Continuing to compound the two-percent cap each year over the length of the collective negotiations agreement.
  • Continuing to include the cost of increments previously negotiated, such as step movements and longevity payments, when determining base salaries.
  • Requiring contracts to be posted conspicuously on the municipal or county website at least 10 days prior to the execution of the contract.
  • Voiding final agreements not filed with PERC or that don’t contain a cost summary.
  • Abolishing “dynamic status quo” step increases after a collectively negotiated agreement has expired.

Despite what Senator O’Scanlon believes, reinstating the cap on interest arbitration awards would be a mistake.  Anyone who believes in the importance of collective labor negotiations and has an understanding of the dynamics that exist at the bargaining table realize that parties reach an accord based on good faith negotiations that take place because each understands the potential repercussions that exist if an impasse is reached.  This statement is true for collective negotiations in both the private and public sectors of our economy.  Furthermore, anyone who has a firm understanding of negotiations and interest arbitration in the public sector recognize the fact that the law, as it presently exists without a two percent salary cap, mandates that interest arbitrators take into consideration the effect their award will have on the two percent (2%) property tax cap levy and the interest and welfare of the taxpayers in general.

Over the last seven (7) years the result of the two percent (2%) salary cap on collective negotiations between public safety negotiations units and management was disastrous.  Because of the New Jersey Public Employment Relations Commission’s interpretation of the two percent salary cap, the bargaining table was no longer level but instead titled so far in favor of management that bargaining in good faith between the parties became non-existent.  Instead, management bargained with the “safety net” that they now had and no matter what the empirical evidence showed, they utilized the salary cap as a sword in achieving what one would believe to be draconian results.

What Senator O’Scanlon has failed to state in his press release is that now, as a result of the two percent (2%) salary cap, the cost of mandatorily legislated health care contributions and the various municipalities, counties and the State of New Jersey freezing increments upon the expiration of a contract; many law enforcement officers today are making less money than they were ten (10) years ago.  This empirical evidence can not be countenanced and when coupled with the cost of inflation, the effect of the cap has had a negative effect on our economy.

Take a look at the cold hard facts and figures and the undeniable truth that every tool one needs to limit police and fire salary increases is already in place in the existing law that governs interest arbitration.  The answer can no longer be legislative evisceration of collective bargaining and thus labor relations amongst management and employees.  Instead keep the playing field level and use the tools that are already at your disposal.

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Photo of Frank M. Crivelli Frank M. Crivelli

Frank M. Crivelli’s practice revolves around the representation of over eighty-five (85) labor unions in various capacities, the majority of which bargain for law enforcement entities. He is proud to be called on a daily basis to provide counsel to over 12,000 state…

Frank M. Crivelli’s practice revolves around the representation of over eighty-five (85) labor unions in various capacities, the majority of which bargain for law enforcement entities. He is proud to be called on a daily basis to provide counsel to over 12,000 state, county and local law enforcement officers, firefighters and EMS workers.

Mr. Crivelli specializes his individual practice in collective negotiations.  Over the past twenty (20) years, Mr. Crivelli has negotiated well over one hundred (100) collective bargaining agreements for various state, county, municipal and private organizations and has resolved over thirty-five (35) labor agreements that have reached impasse through compulsory interest arbitration.  Mr. Crivelli routinely litigates matters in front of the New Jersey State Public Employment Relations Commission, the New Jersey Office of Administrative Law, third party neutrals for mediation, grievance and interest arbitration, the Superior Court of New Jersey and the United States District Court for the District of New Jersey.

Mr. Crivelli founded and created the New Jersey Public Safety Officers Law Blog (www.njpublicsafetyofficers.com) approximately fifteen (15) years ago where he and members of his firm routinely publish blog posts regarding legal issues related to the employment of New Jersey Public Safety Officers.  The blog now contains over six hundred (600) articles and is reviewed and relied upon by thousands of public employees.  Mr. Crivelli has also published books and manuals pertaining to New Jersey Public Employee Disability Pension Appeals and the New Jersey Worker’s Compensation System. Currently, he is drafting a publication on how to Prepare and Negotiate a Collective Bargaining Agreement.  He lectures annually at the New Jersey State PBA Collective Bargaining Seminar, the National Association of Police Organization’s Legal Seminar, the New Jersey Public Employment Relations Commission Seminar on Public Employment Labor Law, the United States Marine Corps’ Commander’s Media Training Symposium and to Union Executive Boards and General Membership bodies on various labor related topics.

Prior to entering private practice, Mr. Crivelli joined the United States Marine Corps where he served as a Judge Advocate with the Legal Services Support Section of the First Force Services Support Group in Camp Pendleton, California.  While serving in the Marine Corps, Mr. Crivelli defended and prosecuted hundreds of Special and General Court Martial cases and administrative separation matters.  In addition to his trial duties, Mr. Crivelli was also charged with the responsibility of training various Marine and Naval combat command elements on the interpretation and implementation of the rules of engagement for various military conflicts that were ongoing throughout the world at that time. After leaving active duty, Mr. Crivelli remained in the Marine Corps Reserves where he was promoted to the rank of Major before leaving the service.

For the past fifteen (15) years, Mr. Crivelli has been certified as a Civil Trial Attorney by the Supreme Court for the State of New Jersey, a certification which less than two percent (2%) of the attorneys in New Jersey have achieved.  He is a graduate of Washington College (B.A.), the City University of New York School of Law (J.D.), the United States Naval Justice School, and the Harvard Law School Program on Negotiation.