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INTEREST ARBITRATION IN THE NEW ECONOMY
Matthew J. Bartmes
INTRODUCTION
In late 2008, the US economy suffered a grievous blow. Some called it the worst
economic crisis since the Great Depression. Not surprisingly, that economic collapse has had a
significant impact on public sector collective bargaining. In the public sector, many employees
with collective bargaining rights are prohibited from striking, and a variety of alternate impasse
procedures exist throughout the states. 1 The focus here is on one form of alternate impasse
procedure, interest arbitration, in which a neutral arbitrator or panel of arbitrators are charged
with determining the terms of collective bargaining agreements as to issues the parties have not
reached agreement on. The arbitrator or panel adjudicates the disputes based on statutorily
designated factors.2 Interest arbitration is regarded as part and parcel of the collective bargaining
process in many jurisdictions, and an important tool for both public employers and unions. This
paper explores the impact that the 2008 economic collapse has had on arbitrators’ deliberative
processes in awarding contracts.
The available data is simply too limited for a meaningful empirical study. The time
frame under discussion, roughly November 2008 through October 2009, is too limited to allow
for a large sample size. Not all states that provide for binding interest arbitration make interest
arbitration awards publically available. The Labor Arbitration Reporter publishes very few
interest arbitration awards, and there is naturally a delay between when the award is issued and
when it is published. Moreover, among the jurisdictions that provide for binding arbitration, use
of interest arbitration varies significantly, leading to a necessarily disparate award sample vis-à-
1 See generally JOSEPH R
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