By Ben Patchen, Esquire
Campbell Durrant, P.C.
September brings football, cooler weather, changing leaves, and yellow school buses, but it also brings a critical deadline for Pennsylvania municipalities with expiring collective bargaining agreements with police officers or firefighters. Under Act 111 of 1968, the deadline to demand interest arbitration is 110 days before the start of a municipality’s fiscal year. For local governments operating on a calendar fiscal year ending December 31, the Act 111 demand deadline falls on September 12.
This year, preparing a comprehensive list of Issues in Dispute is more critical than ever. Recent national survey data projects that employer healthcare costs will jump 11% in 2027—marking the largest single-year increase in two decades. Benefits consultants attribute this surge to rising hospital and prescription drug pricing, high-cost cancer therapies, and unprecedented demand for GLP-1 medications.
Because healthcare represents one of the largest drivers of municipal public safety budgets, local governments cannot afford to overlook benefit structures during this bargaining cycle. If health insurance modifications are not explicitly listed in the municipality’s response as an Issue in Dispute, the municipality risks waiving the right to propose healthcare changes before the Act 111 arbitration panel.
The 5-Day Clock
Once a union submits an Act 111 interest arbitration demand, the municipality has 5 days to respond in writing. The response must include:
1. The name of the municipality’s designated arbitrator (typically its labor counsel).
2. The municipality’s formal list of Issues in Dispute.
To avoid disputes over timeliness, response letters and attached lists of issues should always be delivered by email and certified mail (return receipt requested) or hand delivery. Missing this strict 5-day window severely prejudices the municipality, as unions will argue that the local government forfeited its right to submit issues for the arbitration panel’s consideration.
Strategic Considerations for Issues in Dispute
A municipality’s list details the contract changes it seeks and generally reflects its initial bargaining proposals. Altering this list to reflect concessions or withdrawn proposals made during earlier informal talks typically undermines the municipality’s leverage. Even though final interest arbitration awards often incorporate provisions agreed upon during negotiations, the formal submission should remain aggressive.
A well-crafted list of Issues in Dispute should:
• Preserve Financial Flexibility: Include potential healthcare design changes, premium co-shares, and cost-containment measures.
• Enhance Management Rights: Propose language that makes operations more efficient and cost-effective.
• Mitigate Legal Liability: Eliminate or revise problematic contract provisions, such as overly expansive “Police Bill of Rights” clauses that impair a municipality’s ability to investigate citizen complaints.
An Act 111 arbitration demand does not mean negotiations end; parties frequently resolve contracts at the bargaining table well after arbitration has been invoked. However, preserving your legal position within the 5-day window is essential.
Key Takeaways
• September 12 Deadline: The deadline to demand Act 111 interest arbitration for calendar-year municipalities falls on September 12.
• Strict 5-Day Response Window: Once a union demand is received, the municipality must respond in writing within 5 days with its designated arbitrator and list of Issues in Dispute.
• Protect Healthcare Rights: With 2027 healthcare costs projected to rise 11%, municipalities must include health insurance in their Issues in Dispute to avoid waiving the issue in arbitration.
• Maintain Leverage: The list of Issues in Dispute should proactively advance management rights, operational efficiency, and cost controls. Bargaining can and should continue even after arbitration is declared.
Bottom line:
If your municipality has received an Act 111 interest arbitration demand, contact your labor counsel immediately—the 5-day response clock begins running upon receipt. For assistance with Act 111 strategy or draft responses, contact the labor attorneys at Campbell Durrant, P.C.
