Improving Societal Outcomes in Dispute Resolution Between Local Governments and Fire Fighters in British Columbia

The labour market for fire fighters in British Columbia exhibits serious inefficiencies. Fire fighters' salaries are excessive relative to the supply of labour, while demand for traditional fire suppression activities continues to decrease. These inefficiencies leave society as a whole worse-off since public funds that could be productively spent on other valued purposes are diverted to fire fighter salaries. An important and remediable contributor to the problem is the collective bargaining dispute resolution process, binding arbitration. This study assesses several options for changing the arbitration process to correct the problem. Since the issue is common across North America, the analysis includes case studies of other jurisdictions. The study recommends: changes to the criteria arbitrators must consider; changing to a form of final-offer selection; and consideration of tripartite impasse panels. The provincial government should closely monitor the outcomes of any new system to ensure that changes effectively address the problem.