An Act To Improve Public Sector Labor Relations by Amending the Laws Governing Arbitration under Certain Public Employees Labor Relations Laws
Maine Legislature, Session 130, LD 0677
Committee: Labor and Housing
Sponsors: JACKSON, FECTEAU, LIBBY, MIRAMANT, RAFFERTY, CUDDY, PAULHUS
Amends: 26 MRSA §965, 26 MRSA §979-D, 26 MRSA §1026, 26 MRSA §1285

Legislative Document
No. 677
S.P. 264
In Senate, March 4, 2021
An Act To Improve Public Sector Labor Relations by Amending the 
Laws Governing Arbitration under Certain Public Employees 
Labor Relations Laws
Received by the Secretary of the Senate on March 2, 2021.  Referred to the Committee on 
Labor and Housing pursuant to Joint Rule 308.2 and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by President JACKSON of Aroostook.
Cosponsored by Speaker FECTEAU of Biddeford and
Senators: LIBBY of Androscoggin, MIRAMANT of Knox, RAFFERTY of York, 
Representatives: CUDDY of Winterport, PAULHUS of Bath.
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 selected shall select a 3rd neutral arbitrator from the 
panel of arbitrators established in accordance with section 965, subsection 4-A. If the 
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 
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 
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, 2022.
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, 2022.