WAYNE — Gov. Chris Christie signed legislation today placing a 2 percent cap on salary increases for police and firefighters if their unions can't come to an agreement during contract negotiations. The cap will affect all contracts between municipalities and unions that expire after January 1. As the biggest pieces of the "tool kit" Christie proposed the limit to...
Gov. Chris Christie signs arbitration legislation during a ceremony at the Elks Club in Wayne. WAYNE — Gov. Chris Christie signed legislation today placing a 2 percent cap on salary increases for police and firefighters if their unions can't come to an agreement during contract negotiations.
The cap will affect all contracts between municipalities and unions that expire after January 1.
As the biggest pieces of the "tool kit" Christie proposed the limit to help municipalities deal with the impending 2 percent cap on property tax collections, the bill was heralded by both the governor and Democratic leadership in the Legislature.
The 2 percent limit will affect contracts that come to an impasse and seek a third-party arbitrator to resolve the differences. If a contract goes into arbitration, the salary increases must average 2 percent a year over the length of the contract.
The new legislation also places limits on the pay arbitrators can receive, capping their income at $1,000 a day and $7,500 for the length of the case.
Arbitrators will also be required to reach a decision within 45 days. In some negotiations, contract arbitration has stretched on for years and municipalities were forced to pay back pay once the contract was decided.
Previous coverage:
• Gov. Christie plans to sign bill capping police, firefighter raises at 2 percent through arbitration
• N.J. Assembly approves arbitration reform bill with 2 percent pay cap for police, firefighters
• Gov. Christie, N.J. Democrats reach 'tool kit' deal on union arbitration reform
• Gov. Chris Christie may propose business, income tax cuts by next month