N.J. Cops and Firefighters are Asking for Much Bigger Raises. Here’s Why.

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After West Windsor’s police contract expired at the end of last year and negotiations with the township stalled, the union turned to an arbitrator to break the impasse.

The local union’s demands? Four percent annual pay hikes for sergeants and for patrolmen at the top of the scale and 2 percent annual wage increases for everyone else, in addition to the standard wage increases officers receive for additional years of service.

The township of course came in with a lower counter-offer. And, ultimately, the arbitrator awarded two years of 2-percent raises and two years of 2.25 percent raises for everyone.

Sound like business as usual to you?

No, say local government lobbyists.

They fear it could be a sign of bigger raises for police and firefighters who are emboldened to ask for more following the state’s controversial decision not to renew a law designed to help curb property taxes.

That law set a 2-percent cap on wage increases public-sector unions could win in interest arbitration.

The West Windsor arbitration award is one of just three to emerge since the cap expired in December 2017, opening the door for police and firefighters to get bigger raises when contract talks stall between their unions and municipalities.

The state’s League of Municipalities and Association of Counties continue to urge lawmakers to extend the cap, which they say helped slow the growth of the nation’s highest property taxes. Last year, the average residential property tax bill in New Jersey was $8,767.

Without the limits on arbitration, they said local government leaders would have to cut spending and reduce services to stay within the bounds of a separate 2 percent cap on increases in spending.

While the three arbitration awards issued so far indicate arbitrators are sticking pretty close to spirit of the 2 percent cap, the West Windsor award demonstrates the kind of “creep” that concerns local government employers, said Mike Cerra, assistant executive director of the New Jersey League of Municipalities.

In the decades before the cap was installed in 2011, arbitration awards ranged from 2 percent to nearly 6 percent.

Interest arbitration awards aren’t going to jump to 6 percent overnight, experts said.

Instead, Cerra said, “What we’re likely to see is over the course of time a creeping upwards. This community got 2.25 percent, for this reason this town should get 2.5 percent, and for that basis this town increases to 2.75 percent.”

2017 study — which was derided as one-sided by labor groups — determined the arbitration cap had saved taxpayers $530 million from police and firefighters salaries between 2010 and 2015.

Employers and unions head to arbitration when they can’t agree on contract terms, such as wages, health care contributions, vacation time or other conditions of employment. The vast majority of contracts are settled through voluntary negotiations.