Arbitrator imposes 2% wage increases in spite of govt "wage freeze"

Arbitrator Jesin's recent interest arbitration award between Extendicare and SEIU Local 1 is the first interest arbitration award in the broader public sector since the Government of Ontario announced that it was seeking a 2-year compensation restraint in the broader public sector.

There were multiple issues in dispute which had been unable to be resolved as a result of the Employer's unwillingness to bargain over wages. They claimed that the March budget statement (and subsequent statements from provincial officials) meant that there was no ability to agree to any collective agreement containing wage increases.

Arbitrator Jesin disagreed. He noted that there was "no legislation by the government requiring such a freeze" That is, of course, true. Some would argue that after BC Health, the government could not so legislate. Since the government's March statement indicated that collective agreements signed prior to March 2010 would be honoured including those with wage increases, then clearly some employees in the sector would be getting wage increases in this period. He concludes that "given that increases are being found for other nursing home employees and for some other health care employees I accept that there should be a wage increase in these agreements."

He awarded only 2% increases because the economic situation has been trending downward recently. Other unionized workers are accepting wage increases in the 2% range (down from about 3-4% earlier).

Did Arbitrator Jesin get it right? Or should he have listened to the government's position?

I think he got it right. If collective bargaining is constitutionally protected activity then the government has no right to deprive employees of the right to engage in it. Arbitrarily holding wages frozen removes a core element of collective bargaining. Since governments can't legislate, an interest arbitrator is supposed to impose a contract reflective of industry norms. Arbitrator Jesin did exactly that. Perhaps now all the other broader public sector employers and unions can go back to negotiating collective agreements instead of "consulting" with the Government.