When police officers, firefighters, and deputy sheriffs reach impasse in bargaining, conciliation becomes their path to resolution. Unlike private sector workers who can strike, these essential public employees must rely on a neutral conciliator to resolve contract disputes. But even after winning wage increases through conciliation, a critical question remains: when do those raises actually take effect, and can workers recover wages they should have received months earlier?

The answer involves navigating complex statutory requirements that can delay implementation of hard-won gains or, under the right circumstances, secure retroactive payments worth thousands of dollars per employee. Understanding these rules transforms retroactivity from a technical afterthought into a powerful tool for maximizing compensation recovery.

The Default Rule: Waiting for the Next Fiscal Year

Ohio Revised Code Section 4117.14(G)(11) establishes a restrictive default rule for implementing conciliation awards. Generally, increases in rates of compensation and other matters with cost implications only become effective at the start of the fiscal year that begins after the conciliator issues the award.

This means a conciliation award issued in July typically would not take effect until the following January (for calendar year budgets) or July (for fiscal year budgets beginning July 1). Workers could wait months or even nearly a year before seeing wage increases they fought hard to achieve. For employees already struggling with rising costs and stagnant wages, this delay adds insult to injury.

The statute's restrictive approach reflects legislative concerns about public budgeting and fiscal planning. Lawmakers wanted to prevent mid-year budget disruptions from unexpected conciliation awards. But this fiscal conservatism comes at the expense of workers who may have been underpaid for extended periods while negotiations and conciliation proceedings dragged on.

The Critical Exception: New Fiscal Year Retroactivity

Fortunately, the statute contains a crucial exception that unions must understand and leverage. If a new fiscal year has commenced since SERB issued its order directing the parties to conciliation, then the awarded increases may be retroactive to the beginning of that new fiscal year.

This exception recognizes a fundamental unfairness: conciliation proceedings often extend well beyond the start of a new fiscal year. Without this provision, employees would lose compensation for the entire period between the fiscal year's start and the award's issuance, even though they were working under expired contract terms and awaiting the conciliation process to conclude.

Consider this scenario: SERB orders conciliation in November. The employer's fiscal year begins January 1. The conciliation hearing occurs in February, and the conciliator issues the award in March. Under the exception, wage increases can be retroactive to January 1, recovering three months of higher wages for employees.

The timing of SERB's conciliation order thus becomes strategically critical. Unions approaching the end of a fiscal year should carefully consider whether to push for conciliation before or after the new fiscal year begins. Filing too early might mean losing the opportunity for retroactivity. Filing too late might unnecessarily delay implementation of any award.

Mutual Agreement: The Ultimate Flexibility

Despite these statutory restrictions, parties retain significant power to shape retroactivity through mutual agreement. The statute explicitly allows the public employer and exclusive representative to amend or modify a conciliator's award at any time by mutual consent. This includes agreeing to different retroactivity provisions than the statute would otherwise require.

This flexibility creates opportunities for creative problem solving. Unions might trade other contract provisions for enhanced retroactivity. Employers facing recruitment and retention challenges might agree to retroactivity to demonstrate good faith to their workforce. The key lies in recognizing that retroactivity itself can become a bargaining chip, separate from the conciliation process.

Mutual agreements on retroactivity should be reduced to writing immediately. Verbal understandings or handshake deals invite future disputes about what was actually agreed. A clear memorandum of understanding specifying exact retroactive dates and affected provisions protects both parties and ensures smooth implementation.

Lessons from the City of Columbus Case

Historical precedent demonstrates that retroactivity can be built into the conciliation process itself. In a 1985 case involving the City of Columbus, SERB's order mandating conciliation specifically directed that "all cost items, if any, shall be effective retroactively to that date [December 31, 1984]."

This case reveals an important principle: SERB itself can establish retroactivity parameters when ordering conciliation. Unions should consider requesting specific retroactivity language in any motion seeking SERB intervention. While SERB may not always grant such requests, raising the issue early frames retroactivity as an integral part of resolving the dispute rather than an afterthought.

The Columbus case also emerged from unfair labor practice proceedings where the city had failed to bargain in good faith. This context suggests that retroactivity might be more readily available when the employer's own conduct contributed to bargaining delays. Unions should document any employer delays or bad faith bargaining that extends negotiations, as this evidence could support arguments for enhanced retroactivity.

Calculating the Stakes: Why Retroactivity Matters

The financial impact of retroactivity can be substantial. For a police department with 100 officers earning an average of $70,000 annually, a 3% wage increase retroactive for six months represents $105,000 in retroactive payments. For individual officers, that same retroactivity means a lump sum payment of $1,050, often arriving just when families need it most.

Beyond the immediate financial impact, retroactivity sends a message about the value of the conciliation process. When workers see that the system can deliver not just future improvements but also compensation for past periods of underpayment, it reinforces faith in collective bargaining. Conversely, lengthy delays in implementing awards without retroactivity breed cynicism about whether the process truly serves workers' interests.

Retroactivity also affects union solidarity and support. Members who receive substantial retroactive payments become powerful advocates for their union. They have tangible proof that union representation delivers real benefits. This strengthens the union's position in future negotiations and helps maintain member engagement.

Strategic Approaches to Maximizing Retroactivity

Unions should approach retroactivity strategically from the earliest stages of bargaining. During negotiations, propose contract language that specifically addresses retroactivity of any conciliation award. While employers may resist, raising the issue early establishes its importance.

Document all delays in bargaining, especially those attributable to the employer. If the employer cancels meetings, fails to provide information, or otherwise delays the process, these facts support arguments for enhanced retroactivity. Maintain a detailed chronology showing how employer conduct extended negotiations beyond the fiscal year.

Consider the fiscal year calendar when developing bargaining and conciliation strategy. If negotiations are stalling as the fiscal year end approaches, calculate whether pushing for conciliation before or after the new fiscal year better serves members' interests. Sometimes a short delay in seeking conciliation can yield months of additional retroactivity.

When conciliation becomes inevitable, explicitly address retroactivity in position statements and arguments to the conciliator. Frame retroactivity not as a windfall but as making employees whole for periods they worked without the compensation they deserved. Emphasize any employer delays that contributed to the extended timeline.

Implementation and Enforcement Considerations

Winning retroactivity is only half the battle; ensuring proper implementation requires continued vigilance. Review the employer's calculations carefully. Verify that all affected employees receive proper payments and that retroactivity applies to all relevant wage-dependent benefits like overtime, shift differentials, and pension contributions.

If employers fail to implement retroactive provisions properly, Ohio law provides enforcement mechanisms. Under O.R.C. Section 4117.14(I), parties can bring suit in common pleas court to enforce binding conciliation awards. The threat of court enforcement often motivates employers to implement awards correctly the first time.

Maintain clear communication with members about retroactivity timelines and amounts. Nothing undermines union credibility faster than promising retroactive payments that fail to materialize or arrive in different amounts than expected. Under-promise and over-deliver when discussing potential retroactive awards.

Conclusion: Making Time Work for Workers

Retroactivity transforms conciliation awards from purely prospective remedies into tools for recovering past losses. Understanding the interplay between statutory restrictions, exceptions, and mutual agreement possibilities empowers unions to maximize compensation recovery for their members.

The technical rules governing retroactivity may seem arcane, but their impact is concrete and measurable. Every month of retroactivity recovered means real money in workers' pockets, compensation they earned but might otherwise never receive. In the high-stakes world of public safety labor relations, where strikes are prohibited and conciliation provides the final resolution, mastering retroactivity rules is not just good practice; it's essential to fulfilling the union's duty to maximize member compensation.

As conciliation proceedings become increasingly common in Ohio's public sector, retroactivity will continue to play a crucial role in shaping final outcomes. Unions that understand and strategically pursue retroactivity will deliver superior results for their members, strengthening both their bargaining position and their relationship with the workers they represent.