An Act To Amend the Laws Governing Arbitration under Certain Public Employees Labor Relations Laws
Maine Legislature, Session 129, LD 2090
Committee: Labor and Housing
Sponsors: JACKSON, GIDEON, BELLOWS, LIBBY, VITELLI, FECTEAU, MOONEN, SYLVESTER
Amends: 26 MRSA §965, 26 MRSA §979-D, 26 MRSA §1026, 26 MRSA §1285

Legislative Document
No. 2090
S.P. 739
In Senate, January 30, 2020
An Act To Amend the Laws Governing Arbitration under Certain 
Public Employees Labor Relations Laws
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203.
Reference to the Committee on Labor and Housing suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by President JACKSON of Aroostook.
Cosponsored by Speaker GIDEON of Freeport and
Senators: BELLOWS of Kennebec, LIBBY of Androscoggin, VITELLI of Sagadahoc, 
Representatives: FECTEAU of Biddeford, MOONEN of Portland, SYLVESTER of Portland.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  26 MRSA §965, sub-§4, as amended by PL 1975, c. 564, §18, is further 
amended to read:
4.  Arbitration.  In addition to the 30-day period referred to in subsection 3, the 
parties shall have 15 more days, making a total period of 45 days from the submission of 
findings and recommendations, in which to make a good faith effort to resolve their 
controversy.
If the parties have not resolved their controversy by the end of said the 45-day period, 
they may jointly agree to an arbitration procedure which that will result in a binding 
determination of their controversy.  Such determinations will be are subject to review by 
the Superior Court in the manner specified by section 972.
If they do not jointly agree to such an arbitration procedure within 10 days after the end 
of said the 45-day period, then either party may, by written notice to the other, request 
that their differences be submitted to a board of 3 arbitrators.  The bargaining agent and 
the public employer shall within 5 days of such the request each select and name one 
arbitrator and shall immediately thereafter notify each other in writing of the name and 
address of the person so selected. The 2 arbitrators so selected and named shall, within 10 
days from such the request, agree upon and select and name a neutral arbitrator from the 
panel of arbitrators established in accordance with subsection 4-A.  If either party shall 
not select its arbitrator or if the 2 arbitrators shall fail to agree upon, select and name a 
neutral arbitrator within said 10 days, either party may request the American Arbitration 
Association to utilize its procedures for the selection of the neutral arbitrator.  As soon as 
possible after receipt of such request, the neutral arbitrator will be selected in accordance 
with rules and procedures prescribed by the American Arbitration Association for making 
such selection.  If the 2 arbitrators cannot in 10 days select a neutral arbitrator, the 
executive director shall appoint the neutral arbitrator from the panel of arbitrators 
established in accordance with subsection 4-A.  The neutral arbitrator so selected will 
may not, without the consent of both parties, be the same person who was selected as 
mediator pursuant to subsection 2 nor any member of the fact-finding board selected 
pursuant to subsection 3.  As soon as possible after the selection of the neutral arbitrator, 
the 3 arbitrators or if either party shall not have selected its arbitrator, the 2 arbitrators, as 
the case may be, shall meet with the parties or their representatives, or both, forthwith, 
either jointly or separately, make inquiries and investigations, hold hearings, or take such 
other steps as they deem determine appropriate.  If the neutral arbitrator is selected by 
utilizing the procedures of the American Arbitration Association, the arbitration 
proceedings will be conducted in accordance with the rules and procedures of the 
American Arbitration Association.  The hearing shall must be informal, and the rules of 
evidence prevailing in judicial proceedings shall are not be binding. Any and all 
documentary evidence and other data deemed determined relevant by the arbitrators may 
be received in evidence.  The arbitrators shall have the power to administer oaths and to 
require by subpoena the attendance and testimony of witnesses, the production of books, 
records and other evidence relative or pertinent to the issues represented to them for 
determination. 
If the controversy is not resolved by the parties themselves, the arbitrators shall proceed 
as follows: With respect to a controversy over salaries, pensions and insurance, the 
arbitrators will recommend terms of settlement and may make findings of fact; such 
recommendations and findings will be advisory only and will be made, if reasonably 
possible, within 30 days after the selection of the neutral arbitrator; the arbitrators may in 
their discretion, make such recommendations and findings public, and either party may 
make such recommendations and findings public if agreement is not reached with respect 
to such findings and recommendations within 10 days after their receipt from the 
arbitrators; with respect to a controversy over all subjects other than salaries, pensions 
and insurance, the arbitrators shall make determinations with respect thereto if reasonably 
possible within 30 days after the selection of the neutral arbitrator; such determinations 
may be made public by the arbitrators or either party; and if made by a majority of the 
arbitrators, such determinations will be are binding on both parties and the parties will 
shall enter an agreement or take whatever other action that may be appropriate to carry 
out and effectuate such binding determinations; and such determinations will be are 
subject to review by the Superior Court in the manner specified by section 972. 
Notwithstanding section 964, subsection 2, if the public employer fails to enter into an 
agreement or take whatever other action may be appropriate to carry out and effectuate 
binding determinations made by arbitrators pursuant to this subsection, the public 
employees represented by the bargaining agent, except for public employees whose duties 
include protecting public safety, may engage in a strike.  The results of all arbitration 
proceedings, recommendations and awards conducted under this section shall must be 
filed with the Maine Labor Relations Board at the offices of its executive director 
simultaneously with the submission of the recommendations and award to the parties. In 
the event the parties settle their dispute during the arbitration proceeding, the arbitrator or 
the chairman chair of the arbitration panel will shall submit a report of his the arbitrator's 
or chair's activities to the Executive Director of the Maine Labor Relations Board not 
more than 5 days after the arbitration proceeding has terminated.
In reaching a decision under this subsection, the arbitrator shall consider the following:
A.  The interests and welfare of the public and the financial ability of the public 
employer to finance the cost items proposed by each party to the impasse;
B.  A comparison of the wages, hours and working conditions of the employees 
involved in the arbitration proceeding with the wages, hours and working conditions 
of other employees performing similar services in public and private employment in 
other jurisdictions competing in the same labor market;
C.  The overall compensation presently received by the employees including direct 
wage compensation, vacation, holidays and excused time, insurance and pensions, 
medical and hospitalization benefits, the continuity and stability of employment and 
all other benefits received;
D.  Factors other than those specified in paragraphs A to C that are normally and 
traditionally taken into consideration in the determination of wages, hours and 
working conditions through voluntary collective bargaining, mediation, fact-finding, 
arbitration or otherwise between the parties, in public or private employment, 
including the average Consumer Price Index;
E.  The need of the public employer for qualified employees;
F.  Conditions of employment in similar occupations outside public employment;
G.  The need to maintain appropriate relationships between different occupations in 
public employment; and
H.  The need to establish fair and reasonable conditions in relation to job 
qualifications and responsibilities.
Cost items in a collective bargaining agreement that is arrived at through arbitration in 
accordance with this subsection may not be submitted for inclusion in the municipality's 
operating budget for the fiscal year in which the agreement is ratified, but must be 
submitted for inclusion in the municipality's operating budget for the fiscal year following 
the fiscal year in which the agreement is ratified.
Sec. 2.  26 MRSA §965, sub-§4-A is enacted to read:
4-A.  Panel of arbitrators.  The Governor shall appoint a panel of arbitrators, 
consisting of no fewer than 5 nor more than 10 impartial arbitrators, to serve as impartial 
arbitrators of the interests of the public in the settlement of disputes between employers 
and employees or their representatives. The board shall supply to the Governor 
nominations for appointment to the panel.  The arbitrators must reside in the State and be 
neutral and unbiased. The board shall adopt rules governing the necessary qualifications 
for appointment to the panel and allowable compensation for panel members.
Sec. 3.  26 MRSA §979-D, sub-§4, ¶B, as enacted by PL 1973, c. 774, is 
amended to read:
B.    If the parties have not resolved their controversy by the end of said the 45-day 
period, either party may petition the board to initiate compulsory final and binding 
arbitration of the negotiations impasse. On receipt of the petition, the executive 
director of the board shall investigate to determine if an impasse has been reached.  If 
he so the executive director determines that an impasse has been reached, he the 
executive director shall issue an order requiring arbitration and requesting the parties 
to select one or more arbitrators. If the parties within 10 days after the issuance of the 
order have not selected an arbitrator or a Board of Arbitration, the The board shall 
then order each party to select one arbitrator, and if these 2 arbitrators cannot in 5 
days select a 3rd neutral arbitrator, the board shall submit a list from which the 
parties may alternately strike names until a single name is left, who shall be 
appointed by the board as arbitrator the 2 arbitrators so named shall select a 3rd 
neutral arbitrator from the panel of arbitrators established in accordance with section 
965, subsection 4-A. If the 2 arbitrators cannot in 10 days select a neutral arbitrator, 
the executive director shall appoint the neutral arbitrator from the panel of arbitrators 
established in accordance with section 965, subsection 4-A.
Sec. 4.  26 MRSA §979-D, sub-§4, ¶D, as enacted by PL 1973, c. 774, is 
amended to read:
D.  With respect to controversies over salaries, pensions and insurance, the arbitrator 
will shall recommend terms of settlement and may make findings of fact. Such 
recommendations and findings shall be are advisory and shall are not be binding upon 
the parties. The determination by the arbitrator on all other issues shall be is final and 
binding on the parties.
Sec. 5.  26 MRSA §979-D, sub-§4, ¶F is enacted to read:
F.  Notwithstanding section 979-C, subsection 2, if the public employer fails to enter 
into an agreement or take whatever other action may be appropriate to carry out and 
effectuate binding determinations made by arbitrators pursuant to this subsection, the 
state or legislative employees represented by the bargaining agent, except for 
employees whose duties include protecting public safety, may engage in a strike.
Sec. 6.  26 MRSA §979-D, sub-§4, ¶G is enacted to read:
G.  Cost items in a collective bargaining agreement arrived at through arbitration in 
accordance with this subsection:
(1)  May not be submitted for inclusion in the Governor's operating budget for the 
fiscal year in which the agreement is ratified; and
(2)  Must be submitted for inclusion in the Governor's operating budget for the 
fiscal year following the fiscal year in which the agreement is ratified.
Sec. 7.  26 MRSA §1026, sub-§4, ¶A, as corrected by RR 2009, c. 2, §76, is 
amended to read:
A.  At any time after participating in the procedures set forth in subsections 2 and 3, 
either party, or the parties jointly, may petition the board to initiate arbitration 
procedures. On receipt of the petition, the executive director shall within a reasonable 
time determine if an impasse has been reached; the determination must be made 
administratively, with or without hearing, and is not subject to appeal. If the 
executive director so determines, the executive director shall issue an order requiring 
arbitration and requesting the parties to select one or more arbitrators. If the parties, 
within 10 days after the issuance of the order, have not selected an arbitrator or a 
Board of Arbitration, the executive director shall then order each party to select one 
arbitrator and the 2 arbitrators so selected shall to select a 3rd neutral arbitrator from 
the panel of arbitrators established in accordance with section 965, subsection 4-A.  If 
the 2 arbitrators cannot in 5 days select a 3rd neutral arbitrator, the executive director 
shall submit identical lists to the parties of 5 or more qualified arbitrators of 
recognized experience and competence appoint the 3rd neutral arbitrator from the 
panel of arbitrators established in accordance with section 965, subsection 4-A.  Each 
party has 7 days from the submission of the list to delete any names objected to, 
number the remaining names indicating the order of preference and return the list to 
the executive director.  In the event a party does not return the list within the time 
specified, all parties named therein are deemed acceptable. From the arbitrators who 
have been approved by both parties and pursuant to the order of mutual preference, 
the executive director shall appoint a neutral arbitrator.  If the parties fail to agree 
upon any arbitrators named, or if for any other reason the appointment cannot be 
made from the initial list, the executive director shall then submit a 2nd list of 5 or 
more additional qualified arbitrators of recognized experience and competence from 
which they shall strike names with the determination as to which party shall strike 
first being determined by a random technique administered through the Executive 
Director of the Maine Labor Relations Board.  Thereafter, the parties shall alternately 
strike names from the list of names submitted, provided that, when the list is reduced 
to 4 names, the 2nd from the last party to strike shall be entitled to strike 2 names 
simultaneously, after which the last party to strike shall so strike one name from the 
then 2 remaining names, such that the then remaining name shall identify the person 
who must then be appointed by the executive director as the neutral arbitrator.
Nothing in this subsection may be construed as preventing the parties, as an 
alternative to procedures in the preceding paragraph, from jointly agreeing to elect 
arbitration from either the Federal Mediation and Conciliation Service or the 
American Arbitration Association, under the procedures, rules and regulations of that 
association, provided that these procedures, rules and regulations are not inconsistent 
with paragraphs B and C.
Sec. 8.  26 MRSA §1026, sub-§4, ¶B, as amended by PL 1983, c. 153, §2, is 
further amended to read:
B.  If the controversy is not resolved by the parties themselves, the arbitrators shall 
proceed as follows: With respect to a controversy over salaries, pensions and 
insurance, the arbitrators will recommend terms of settlement and may make findings 
of fact; such recommendations and findings will be advisory only and will be made, 
if reasonably possible, within 60 days after the selection of the neutral arbitrator. The 
arbitrators may in their discretion make such recommendations and findings public, 
and either party may make such recommendations and findings public if agreement is 
not reached with respect to such findings and recommendations within 10 days after 
their receipt from the arbitrators. With with respect to a controversy over all subjects 
other than salaries, pensions and insurance, the arbitrators shall make determinations 
with respect thereto if reasonably possible within 60 days after the selection of the 
neutral arbitrator. Such determinations may be made public by the arbitrators or 
either party and if made by a majority of the arbitrators, such determinations will be 
are binding on both parties and the parties will shall enter an agreement or take 
whatever other action that may be appropriate to carry out and effectuate such 
binding determinations, and such determinations will be are subject to review by the 
Superior Court in the manner specified by section 1033.  The results of all arbitration 
proceedings, recommendations and awards conducted under this section shall must be 
filed with the Maine Labor Relations Board at the offices of its executive director 
simultaneously with the submission of the recommendations and award to the parties. 
In the event the parties settle their dispute during the arbitration proceeding, the 
arbitrator or the chairman chair of the arbitration panel will shall submit a report of 
his the arbitrator's or chair's activities to the Executive Director of the Maine Labor 
Relations Board not more than 5 days after the arbitration proceeding has terminated.
Sec. 9.  26 MRSA §1026, sub-§4, ¶D is enacted to read:
D.  Notwithstanding section 1027, subsection 2, if the university, academy or 
community college fails to enter into an agreement or take whatever other action may 
be appropriate to carry out and effectuate binding determinations made by arbitrators 
pursuant to this subsection, the university, academy or community college employees 
represented by the bargaining agent, except for employees whose duties include 
protecting public safety, may engage in a strike.
Sec. 10.  26 MRSA §1026, sub-§4, ¶E is enacted to read:
E.  Cost items in a collective bargaining agreement arrived at through arbitration in 
accordance with this subsection:
(1)  May not be submitted for inclusion in the Governor's operating budget for the 
fiscal year in which the agreement is ratified; and
(2)  Must be submitted for inclusion in the Governor's operating budget for the 
fiscal year following the fiscal year in which the agreement is ratified.
Sec. 11.  26 MRSA §1285, sub-§4, as enacted by PL 1983, c. 702, is amended to 
read:
4.  Arbitration.
A.  In addition to the 30-day period referred to in subsection 3, the parties shall have 
more days, making a total of 45 days from the submission of findings and 
recommendations, in which to make a good faith effort to resolve their controversy.
B.  If the parties have not resolved their controversy by the end of that 45-day period, 
either party may petition the board to initiate compulsory final and binding arbitration 
of the negotiations' impasse.  On receipt of the petition, the executive director of the 
board shall investigate to determine if an impasse has been reached. If he the 
executive director so determines, he the executive director shall issue an order 
requiring arbitration and requesting the parties to select one or more arbitrators.  If 
the parties, within 10 days after the issuance of the order, have not selected an 
arbitrator or an arbitration panel, the board shall then order each party to select one 
arbitrator and, if these 2 arbitrators cannot in 5 days select a 3rd neutral arbitrator, the 
board shall submit a list from which the parties may alternately strike names until a 
single name is left, who shall be appointed by the board as arbitrator the 2 arbitrators 
so selected to select a 3rd neutral arbitrator from the panel of arbitrators established 
in accordance with section 965, subsection 4-A.  If the 2 arbitrators cannot in 5 days 
select a 3rd neutral arbitrator, the executive director shall appoint the 3rd neutral 
arbitrator from the panel of arbitrators established in accordance with section 965, 
subsection 4-A. In reaching a decision under this paragraph, the arbitrator shall 
consider the following factors:
(1)  The interests and welfare of the public and the financial ability of State 
Government to finance the cost items proposed by each party to the impasse;
(2)  Comparison of the wages, hours and working conditions of the employees 
involved in the arbitration proceeding with the wages, hours and working 
conditions of other employees performing similar services in the executive and 
legislative branches of government and in public and private employment in 
other jurisdictions competing in the same labor market; 
(3)  The overall compensation presently received by the employees, including 
direct wage compensation, vacation, holidays and excused time, insurance and 
pensions, medical and hospitalization benefits, the continuity and stability of 
employment, and all other benefits received; 
(4)  Such other factors not confined to the foregoing, which are normally and 
traditionally taken into consideration in the determination of wages, hours and 
working conditions through voluntary collective bargaining, mediation, fact-
finding, arbitration or otherwise between the parties, in the public service or in 
private employment, including the average Consumer Price Index; 
(5)  The need of the Judicial Department for qualified employees; 
(6)  Conditions of employment in similar occupations outside State Government; 
(7)  The need to maintain appropriate relationships between different occupations 
in the Judicial Department; and 
(8)  The need to establish fair and reasonable conditions in relation to job 
qualifications and responsibilities. 
C.  Cost items in a collective bargaining agreement arrived at through arbitration in 
accordance with this subsection:
(1)  May not be submitted for inclusion in the Judicial Department's operating 
budget for the fiscal year in which the agreement is ratified; and
(2)  Must be submitted for inclusion in the Judicial Department's operating 
budget for the fiscal year following the fiscal year in which the agreement is 
ratified.
With respect to controversies over salaries, pensions and insurance, the arbitrator shall 
recommend terms of settlement and may make findings of fact.  The recommendations 
and findings shall be are advisory and shall are not be binding upon the parties.  The 
determination by the arbitrator on all other issues shall be is final and binding on the 
parties.  Notwithstanding section 1284, subsection 2, if the public employer fails to enter 
into an agreement or take whatever other action may be appropriate to carry out and 
effectuate binding determinations made by arbitrators pursuant to this subsection, the 
judicial employees represented by the bargaining agent, except for employees whose 
duties include protecting public safety, may engage in a strike.
Any hearing shall must be informal and the rules of evidence for judicial proceedings 
shall are not be binding.  Any documentary evidence and other information deemed 
determined relevant by the arbitrator may be received in evidence. The arbitrator may 
administer oaths and require by subpoena attendance and testimony of witnesses and 
production of books and records and other evidence relating to the issues presented. The 
arbitrator shall have has a period of 30 days from the termination of the hearing in which 
to submit his a report to the parties and to the board, unless that time limitation is 
extended by the executive director.
Sec. 12.  26 MRSA §1285, sub-§5, ¶E, as enacted by PL 1983, c. 702, is 
amended to read:
E.  In reaching a decision, the mediator-arbitrator shall consider the factors specified 
in section 1285, subsection 4.  With respect to controversies over salaries, pensions 
and insurance, the mediator-arbitrator shall recommend terms of settlement and may 
make findings of fact. Such recommendations and findings shall be are advisory and 
shall are not be binding on the parties.  The determination of the mediator-arbitrator 
on all other issues shall be is final and binding on the parties.
Sec. 13.  Effective date.  This Act takes effect July 1, 2021.
SUMMARY
Under current law, arbitrations under labor relations laws governing municipal public 
employees, University of Maine System employees, state employees and judicial 
employees require that each party select one arbitrator and those 2 arbitrators select a 
neutral 3rd arbitrator.  This bill requires that the neutral 3rd arbitrator be selected from a 
panel of arbitrators appointed by the Governor from a list of nominations supplied by the 
Maine Labor Relations Board.  Under the bill, appointees to the panel of arbitrators serve 
as impartial arbitrators of the interests of the public in the settlement of disputes between 
employers and employees or their representatives, and each appointee must reside in the 
State.  In addition, this bill:
1. Amends the labor relations laws governing municipal public employees and 
University of Maine System employees to provide that determinations by arbitrators with 
respect to controversies over all subjects, including salaries, pensions and insurance, are 
final and binding on the parties;
2. Amends the labor relations laws governing state employees to provide that, with 
respect to controversies over salaries, an arbitrator's determinations are final and binding 
on the parties;
3. Amends the labor relations laws governing judicial employees to provide that an 
arbitrator's determinations with respect to controversies over all subjects, including 
salaries, pensions and insurance, are final and binding on the parties and that, with respect 
to controversies over salaries, determinations by mediator-arbitrators are final and 
binding on the parties;
4. Adds specific factors an arbitrator must consider when a controversy is not 
resolved between a public employer and bargaining agent under the municipal public 
employees labor relations law; 
5.  Provides that, if a public employer fails to enter into an agreement to carry out and 
effectuate binding determinations made by arbitrators, the public employees are 
authorized to strike;
6.  Requires that cost items in a collective bargaining agreement arrived at through 
arbitration may not be included in the state or local operating budget, as relevant, for the 
current fiscal year, but must instead be submitted for inclusion in the operating budget for 
the following fiscal year; and
7. Provides an effective date for the changes made in the bill of July 1, 2021.