Tiffany R. Allen, Esq., Campbell Durrant, P.C. | June 2026
For Pennsylvania public employers subject to Act 111, strict compliance with the statute’s bargaining timetable is essential to preserve, or defeat, the right to binding interest arbitration. Under Act 111, collective bargaining must commence at least six months before the beginning of the next fiscal year. Additionally, the request for interest arbitration must be made at least one hundred and ten (110) days before the beginning of the municipality’s next fiscal year. For employers operating on a calendar fiscal year, a demand for Act 111 interest arbitration for fiscal year 2027 must be made no later than September 12, 2026, which is 110 days before January 1, 2027. An untimely demand may waive the union’s right to binding interest arbitration for that fiscal year, and any panel convened despite a late demand may lack jurisdiction to award contract terms for 2027.
Act 111’s timetable should also be considered alongside Pennsylvania Labor Relations Board (“PLRB”) precedent addressing when the duty to bargain begins. The PLRB has held that an employer’s statutory duty to begin bargaining under Act 111 does not commence until the statutory deadline arrives. For employers whose budget is based on a calendar-year, that deadline is June 30. The PLRB has held that an employer’s duty to begin bargaining does not arise until the statutory bargaining deadline arrives. In City of Philadelphia, 27 PPER 27131 (Final Order 1996), the Board explained that an employer on a calendar fiscal year is not required to begin bargaining before June 30. The PLRB reaffirmed that principle in a later City of Philadelphia decision, 29 PPER 29149 (Final Order 1998), confirming that neither party is obligated to initiate bargaining before the statutory deadline. Should an employer decline to bargain before June 30, it may argue that no impasse could be reached until at least 30 days after that date.
The right to Act 111 interest arbitration arises when collective bargaining reaches an impasse or stalemate, which is deemed to occur if the parties fail to reach a written agreement within 30 days after bargaining begins. The statute deems an impasse to occur if the parties have not reached a written agreement settling the disputed issues within 30 days after collective bargaining proceedings have been initiated. As the Commonwealth Court explained in Bivighouse v. Borough Council of Borough of Telford, 445 A.2d 561 (Pa. Commw. 1982), arbitration becomes available only after bargaining has been initiated and the process has proved fruitless. Courts and the PLRB have further recognized that the bargaining process begins when one party requests collective bargaining, subject to the June 30 deadline, even if actual bargaining sessions occur after that date. As a result, an arbitration demand for the immediately following calendar year will not necessarily be premature merely because it is filed soon after June 30, provided that at least 30 days have passed since bargaining was initiated and no written agreement has been reached.
The appointment process that follows an arbitration demand is also subject to strict statutory deadlines. The PLRB has explained that because the employer has an affirmative duty to designate an arbitrator within five days after a request for an interest arbitration panel, any alleged refusal to arbitrate occurs when that five-day period expires. This timing can be significant because it can determine when the statute of limitations period begins to run should the union file a charge of unfair labor practice against the employer for its failure to timely appoint an arbitrator. Employers are encouraged to contact labor counsel for advice before responding to the union’s demand.