Two Percent Tax Cap Limits Contract Negotiations

Labor contracts with hundreds of Ocean County law enforcement employees will be covered by a new state law requiring arbitrators to limit awards to the new two percent cap on property tax increases, according to Freeholder John C. Bartlett Jr.

Bartlett pointed to a letter from Gov. Chris Christie saying; "the new (arbitration) process limits annual compensation increases to two percent (to match the two percent property tax cap I signed into law), requires the arbitrator to consider the impact of an award upon property taxes and eliminates delays in the arbitration process by requiring an award within 45 days.’’

Christie replied to two letters from Bartlett blasting the arbitration reforms signed into law in December because he feared they would not apply to contract talks now underway with union leaders representing the employees in the offices of the prosecutor, sheriff and corrections department.

Bartlett claimed the new arbitration restrictions would not apply to contracts that expired before Jan. 1, as is the case with those now being negotiated.

"Ocean County, therefore, is intolerably burned by a system that purports to offer relief and does not,’’ Bartlett said. It would have been better to eliminate binding arbitration altogether, he told Christie in a Jan. 12 letter.

Yesterday he said the freeholders have had "an excellent relationship,’’ with union leaders. "We always arrived at agreeable contracts.’’ The exceptions, he said, came when the "arbitrator threat-thanks to state meddlesomeness- has always resulted in excessive conclusions.’’

He said contracts negotiated in 2011 should be limited to a two percent arbitration award, a view Christie shares.

"This new law rejects the past practice of arbitrators awarding ever-expanding benefits and lucrative contract agreements with no thought as to how we, the taxpayers, will be able to foot the bill,’’ Christie said in his response to Bartlett.

The governor said the reforms also have arbitrators picked at random, cap their pay, and impose "stronger ethical standards.’’

If arbitration awards exceed the ability of taxpayers to pay for them, Christie said he and legislative leaders will revisit the reforms.

"I truly believe that this will not be the case and that this new system will ensure a fair, affordable and timely resolution when contract negotiations reach an impasse,’’ he added.

Bartlett said the claim that law enforcement employees need binding arbitration because they cannot strike is "disingenuous. No public employees in New Jersey have the right to strike.’’

"I appreciate the tone of the letter from the governor,’’ said Freeholder John P. Kelly. "We’ve talked about this before, but these are different economic times.’’

He said if one union gets an award of more than two percent, the money has to come out of what is available for other unions.

"These are difficult times for all of us. We’re going to move forward,’’ Kelly added.