NJ State Police – Can Arbitration Lead to the Solution of the Years’ Long Wage Impasse?

By: Lauren P.

It has been years since New Jersey State Police have seen a marginal rise in their income, unlike that of other states. In fact, the State Police have not seen a new contract detailing their salary since 2012.[1]

Recently, the Division of the State Police (hereinafter the “Division”) and the State Troopers NCO Association of New Jersey (hereinafter theNCOA”) submitted to arbitration pursuant to the Police and Fire Interest Arbitration Reform Act[2] to seek a resolution to the years of negotiating.[3] Unfortunately for the State Troopers, the arbitrator whom adjudicated the State Police’s claim for increased wage, held that there would only be a 1% pay increase.[4]

Under New Jersey State law,[5] the arbitrator should weigh the following factors:

“Interests and welfare of the public”

  1. “Comparison of the wages, salaries, hours, and conditions of employment of the employees involved in the arbitration proceedings with the wages, hours, and conditions of employment of other employees performing the same or similar services and with other employees generally;”
  2. “Stipulations of the party;”
  3. “The lawful authority of the employer;”
  4. “The financial impact on the governing unit, its residents, the limitations imposed upon the local unit’s property tax levy…;”
  5. “The cost of living;”
  6. “The continuity and stability of employment…;”
  7. “Statutory restrictions imposed on the employer.”

Statutory restrictions also limited the arbitrator to increasing the annual pay by no more than 2%.[6]

Specifically, the arbitrator refused to look at comparable wages, salaries, hours and conditions of employment in other States. Comparatively, the average amount that neighboring states (Delaware, Pennsylvania, Rhode Island, New York, Connecticut, and Massachusetts) receive in wage increase is on average 2.75% a year.[7] However, the Division argued that other state’s wages are “irrelevant” because of different statutory structures, and the arbitrator agreed.[8]

With regard to the fifth factor the arbitrator stated: “I conclude that despite New Jersey’s fiscal problems this is a modest wage increase that would have limited financial impact on the State.”[9] Though retirements have been on the rise, the arbitrator believed that “the small increase will hopefully contribute to the continuity and stability.”[10]

Endnotes:

[1] New Jersey 101.5, New Jersey State troopers reject 1.25% salary increase, say they want better benefit, http://nj1015.com/nj-state-troopers-reject-1-25-salary-increase-say-they-want-more/.

[2] N.J.S.A. 34:13(e)(1).

[3] New Jersey v. State Troopers NCO Association of New Jersey, IA-2016-007 (Feb. 1, 2016) (Cure, Arb.), available at http://www.perc.state.nj.us/IAAwards.nsf/IAUpdates/56E7EE5A86BA11D985257F5D0050C02F/$File/IA-2016-007.pdf?OpenElement.  

[4] Id.

[5] N.J.S.A. 34:13-6(g).

[6]  N.J.S.A. 34:13A-16.7(b).

[7] New Jersey v. State Troopers NCO Association of New Jersey, IA-2016-007 (Feb. 1, 2016) (Cure, Arb.), available at http://www.perc.state.nj.us/IAAwards.nsf/IAUpdates/56E7EE5A86BA11D985257F5D0050C02F/$File/IA-2016-007.pdf?OpenElement.  

[8] Id.

[9] Id.

[10] Id.

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