THE ETHICAL STANDARDS CLAUSE - A LESSON FROM THE PRIVATE-SECTOR FOR THE PUBLIC-SECTOR

Increasing fiscal pressures on public sector employers have intensified the need for new cost efficiencies. At the same time, mistrust and antagonism between public employers and their unions continue to play a significant role in public expenditures. The cost of arbitrating grievances which could have been settled at lower levels is illustrative. Borrowing from a private sector example, this article discusses the inclusion of an ''ethical standards'' clause in public sector collective bargaining agreements as a novel approach to cost reduction. The article describes the advantages and potential disadvantages of such a clause, and urges public sector employers and unions to consider whether they should negotiate one to fit their particular needs.