Interest arbitration under fire in era of fiscal restraint

Principle of replication, choice of comparators resulting in awards critics claim are too large
By Danielle Harder
|Canadian Labour Reporter|Last Updated: 02/13/2012

There’s a battle building over the issue of interest arbitration in Canada, with some saying it’s time for change and others worrying any change may bring about its demise.

The Nova Scotia government announced in January 2011 it will cover the extra $5.5 million in wages awarded to nurses who work for the Capital District Health Authority (CDHA).

Although the CDHA said it could afford only a one per cent per year increase over a two-year agreement, the arbitrator awarded a wage increase of 7.1 per cent over three years.