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Why Local Governments Bargain Together — And Why the Model Is Changing

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Local governments have long bargained collectively with unions to avoid being played off against one another — a dynamic known as the whipsaw effect, where an early high settlement in one municipality pressures others to match it, regardless of their ability to pay.

That approach led to the creation of the Greater Victoria Labour Relations Association in 1976, helping municipalities coordinate negotiations and stabilize labour costs for decades.

This week, the organization formally rebranded as the Local Government Labour Relations Association, approving a new mandate, a new business model, and a plan to expand beyond Greater Victoria.

Oak Bay Mayor Kevin Murdoch, who chairs the association, joins Josh & Jade to explain why the original model worked, why it came under strain as municipalities evolved, and how the new structure aims to balance coordination with local flexibility — without repeating the mistakes of the past.

Image Source: Province of British Columbia (GeoBC)

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