Hillsdale PBA Local 207 v. Borough of Hillsdale

Hillsdale PBA, Local 207 (the union) (plaintiff) represented police officers in the borough of Hillsdale (the city) (defendant). After the parties were unable to reach a collective-bargaining agreement for the period 1991 to 1993, the union exercised its right under New Jersey law (section 16) to petition the Public Employment Relations Commission (the commission) to initiate public-interest arbitration. Section 16 required an arbitrator to choose between the two parties’ final offers and to render a written explanation for the decision. It also listed eight relevant factors an arbitrator must consider. The main dispute hinged on salaries and nonwage benefits. An arbitrator chose the union’s offer, relying heavily on a comparison with police and fire-department personnel in similar localities, even though the relevant factor demanded a comparison including private employees and other public-sector employees. The Appellate Division vacated the arbitrator’s ruling and remanded the case for a new hearing with a new arbitrator. The Appellate Division found that the arbitrator’s decision was not supported by credible evidence, highlighting the arbitrator’s failure to obtain evidence from the parties on each of the relevant section 16 factors. The Appellate Division concluded that each of the section 16 factors was presumptively relevant. Ultimately, the Appellate Division determined that neither the arbitrator nor the parties adequately considered all the relevant factors. The union appealed to enforce the arbitrator’s ruling.