The Employers' Edge - Ability To Pay, Proper Comparators Key To Interest Arbitration Decision Under HLDAA

Interest arbitration under the Hospital Labour Disputes Arbitration Act ("HLDAA") is a process designed to address outstanding issues where the parties in a collective bargaining relationship are unable to reach agreement on a new collective agreement.  CCP assists numerous clients in the health care sector with this process, and we share below a recent decision of significance.

In order to qualify for this process, the Employer must be designated a "hospital" for the purposes of HLDAA.  This designation, and access to the interest arbitration process under HLDAA, comes with a tradeoff: the employees cannot go out on strike, nor can the employer lock the employees out.  These restrictions are reflective of the "hospital" designation being a function of the need for the services and/or care provided by the Employer to continue.