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The article describes how arbitrator actually resolve ability-to-pay issues; it is not a prescription of how they should. It notes that some arbitrators accept the allocations of funds in governmental budgets as definitive, but that a majority critically assess the accuracy of revenue estimates and the reasonableness of budgeted expenditure priorities and allocations. Nonetheless, arbitrators …

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The report of an industrial inquiry commission of the compensation of hospital employees in Ontario (the “Johnson Commission”) concluded that neither government guidelines nor ability-to-pay should be used by arbitrators in settling public hospital employee disputes. Since that report, arbitrators have placed little weight on the employer’s ability-to-pay in hospital and other public sectors. The …

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Is a “final offer” ever final?

A discussion of public sector final offer arbitration in Michigan.

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