The Cornwall and Area Chamber of Commerce is joining in a call for changes to the arbitration process for municipalities, saying the current system forces communities like Cornwall to raise taxes.

PHOTO CREDIT - Cornwall Chamber of Commerce

Cornwall - Apr. 16, 2011 - The Cornwall and Area Chamber of Commerce is joining in a call for changes to the arbitration process for municipalities, saying the current system forces communities like Cornwall to raise taxes.

The local chamber plans to support a resolution from the Greater Kitchener Waterloo Chamber of Commerce to revise the current arbitration practices.

"Too many contracts are settled through arbitration," said chamber President Rick Shaver in a press release.

"Municipalities like Cornwall have little control over contract negotiations that go to arbitration and as a result, it is forced to increase taxes in order to absorb the cost of higher wage rates. That affects all of us who work and live in the community."

Even though the provincial government imposed a two-year wage freeze on all non-unionized employees in the Ontario public sector, municipalities are excluded. With numerous contracts expected to be settled by arbitration, it can negatively impact municipal budgets, the chamber stated.

"When that happens, municipalities like Cornwall have to find additional revenues, and through no fault of its own, it sometimes leads to a tax increase," Shaver noted.

A number of Ontario mayors have called upon the provincial government to change the arbitration rules that are unbalanced with respect to municipalities. The Kitchener Waterloo chamber will present its resolution at the Ontario Chamber of Commerce (OCC) annual conference and AGM. The resolution is asking the province to "immediately revise the provincial arbitration system to correct current inequities and establish methodologies that incorporate prevailing economic conditions across municipalities for arbitrators and arbitrated settlements."

The Cornwall Chamber will support the resolution and has received a letter from Mayor Bob Kilger supporting its position. The Chamber will be sending a delegation to the OCC convention later this year.