HRPA’s Labour Relations materials note that when interest arbitration replaces the right to strike, two well-documented negative effects can occur:

Chilling effect – parties bargain less earnestly, anticipating an arbitrator will impose a settlement.

Dependency (narcotic) effect – parties become reliant on arbitration over time, weakening direct bargaining capacity.

These are highlighted as systemic drawbacks when arbitration is used as a substitute rather than a last resort.

Relevant HRPA references (no external links):

HRPA Study Guide – Labour Relations: Interest Arbitration; “chilling” and “dependency/narcotic” effects.

HRPA Competency Framework – Labour & Employee Relations: “explain dispute resolution mechanisms and their impacts on bargaining behaviour.”