The Senate passed a bill Thursday that would make changes to how work contract disputes are settled between cities and labor unions.

Senate Bill 826, by Sen. David Holt, R- Oklahoma City, passed 25-16.

The bill is one of several Republican proposals in the Legislature this year to change how public employee compensation is handled as the state and cities look to tighten budgets and address various funding shortfalls.

At issue in SB 826 is a collective bargaining process called binding arbitration that occurs when contract negotiations fail between a local government and police or firefighter labor union.