SAY “THANKS, BUT NO THANKS” TO BACK PAY FROM FSIP OR INTEREST ARBITRATORS- Part 2
Less than a month ago we posted an article warning the parties, but particularly unions, about the potential problems with asking the Panel or interest arbitrators to make a salary increase retroactive. An imposed retroactive pay increase appears to be highly vulnerable to being overturned on appeal. That could mean not only that the union would lose the imposed retroactive lump sum, but also delay implementation of the prospective pay increase part of the impasse order. Millions could be lost if the union did not deal with the situation strategically—and correctly. Given the importance of this issue, we have dug a little deeper than the first posting. Although the FLRA has not yet squarely addressed whether the Panel or an interest arbitrator can order that a negotiated salary increase be retroactively implemented, the Comptroller General (CG) has often. Once this issue gets before the Authority it is likely CG case law precedent will at least be considered. (See NWS and NWSEO, 69 FLRA 256 (2016)) And that means the parties bargaining over salary increases should too. Continue reading