Final Offer Arbitration and the State Sector Act

Abstract

The first version of the State Sector Bill (State Sector Bill {l)) specified that the Labour Relations Act 1987 would apply in the State Services with respect to dispute settlement Under the Labour Relations Act 1987, the procedure of conciliation may be used only in situations involving two or more employers (s.l34(4)). Hence, to be consistent, conciliation was not available as an option in the state services. Furthennore, arbitration under the Labour Relations Act only operates when both parties agree to its use, and thus compulsory arbitration is no longer available. Thus, the State Sector Bill (I) presented the state unions with the scenario of losing their right to annual general adjusunents and with the possibility of arbitration no longer being available (should the State Services Commission (SSC) or the corresponding "employer" refuse to agree to arbitration). In addition to these very real problems, there were also fears among some groups that they would/could lose other rights (such as parental leave) not written into detern1inations or otherwise provided for in legislation. Some state unions deplored the fact that State Sector Bill (1) encouraged strike action - and went out on strike in protest. After protests and strike action, and further submissions, a second version of the State Sector Bill appeared dated 16 March 1988. This, State Sector Bill (2), provides the basis for the following discussions. It is assumed the State Sector Act, due to take effect from April 1, will not be significantly altered from this.