The bill amends several sections of Chapter 28-9.4, "Municipal Employees Arbitration," to enhance the rights of municipal employees regarding collective bargaining and arbitration. It establishes a public policy that supports the right of municipal employees to organize and negotiate collectively with their employers over wages, rates of pay, and all other terms of employment, while explicitly stating that the right to strike is not granted. The bill introduces a new method of arbitration to resolve disputes, recognizing the necessity of providing an alternative to striking.

Additionally, the bill specifies that the employee organization selected by municipal employees will be recognized as the exclusive bargaining agent unless changed by a vote of the employees. It outlines new factors that arbitrators must consider when making decisions, including comparisons of wage rates and hourly conditions of employment with similar jobs in the local area, the interests and welfare of the public, and various peculiarities of employment such as hazards, physical and educational qualifications, mental qualifications, and job training and skills.

The bill grants arbitrators the authority to render binding decisions on all negotiated matters, including those involving financial expenditures. A majority decision of the arbitrators shall be final and binding upon both the bargaining agent and the municipal employer. The act will take effect upon passage.