Final‐Offer Arbitration: A New Zealand Variation

Abstract

This journal was the first to publicize the concept of final‐offer arbitration (FOA), so it is appropriate that it also publish a brief description of a unique form of FOA used to settle police compensation disputes in New Zealand. As with many forms of FOA, this approach requires mediation before arbitration. What makes it unique is that the arbitrator is present during the mediation and can provide feedback to the parties on “trial balloon” final offers. Another unique feature is that the dispute‐settlement system was designed by the parties themselves, within an enabling legislative framework, and has been molded by them over the past decade. This article describes this different form of FOA and the parties’ experiences with it through several rounds of salary negotiations during the 1990s. Being based on reports by the participants, it is subject to the normal biases of parties asked to evaluate their own handiwork.

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