The Progressive Conservatives want to see changes in the way arbitration is handled in Ontario's public sector labour disputes.

Opposition Leader Tim Hudak says municipalities are calling for the system to be restructured so arbitrators consider the financial
impact of their decisions.

The Conservatives have introduced a private member's bill that would force arbitrators to consider such factors as a local unemployment rate and tax base before awarding pay hikes.

A Conservatives private member's bill would force arbitrators to consider such factors as a local unemployment rate and tax base
before awarding pay hikes.

Mayors and municipal councils say they need the arbitration rules changed so police and firefighters get contracts based on the
community's ability to pay.