Arbitrated settlements need not be high

The question about making transit systems essential services is whether that will lead to increased costs through arbitration.

It may have that effect but it need not. An arbitrated agreement should be "fair" to both sides. In practice this is often seen as leading to higher costs and public transit need more funding. Nevertheless, a settlement following a strike may be better or worse but it is a result of the interaction of time and power -- fairness has little to do with it.

From the Globe:

"Mayoral candidate and former deputy premier George Smitherman said in a statement that there are "valid concerns about the cost of arbitrated wage settlements that go along with deeming a service, such as the TTC, essential." However, he "applauds" the bill "as it reflects an appropriate source of concern about the cost of a TTC strike to the city and commuters."

Mayoral candidate Rocco Rossi said the idea is a laudable one, if the province plans to help pay the associated costs of rising wages it would entail."

James Morton
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