Arbitration

Definition

Arbitration is a method of resolving disputes outside the courts, where an impartial third party, known as an arbitrator, makes a binding decision. This process is often utilized in labor relations to settle conflicts between employers and employees, especially during negotiations and after strikes, allowing both sides to reach agreements without prolonged confrontations. It is a key component in ensuring fair collective bargaining and can prevent strikes and work stoppages.

5 Must Know Facts For Your Next Test

1. Arbitration provides a quicker resolution to disputes compared to traditional court proceedings, saving time and resources for both parties involved.
2. The American Federation of Labor advocated for arbitration as a way to resolve labor disputes and minimize disruptions in the workplace.
3. Many labor contracts include arbitration clauses that require disputes to be settled through arbitration before any legal action can be taken.
4. Arbitrators are often selected from professional associations or panels specializing in labor relations, ensuring they have expertise in the issues at hand.
5. Arbitration decisions are generally binding, meaning that both parties must adhere to the arbitrator's ruling, which can help maintain workplace harmony.

Review Questions

• How does arbitration serve as an alternative to strikes in labor relations?
  • Arbitration acts as a crucial alternative to strikes by providing a structured process for resolving disputes between employers and employees. When disagreements arise, arbitration allows both parties to present their cases to an impartial arbitrator who makes a binding decision. This process helps avoid the disruptions and economic losses associated with strikes, allowing work to continue while still addressing employee concerns.
• Discuss the role of arbitration in the context of collective bargaining agreements.
  • Arbitration plays a significant role in collective bargaining agreements by serving as a mechanism for resolving conflicts that may arise during negotiations. Many collective bargaining agreements include arbitration clauses that outline how disputes should be handled if the parties cannot reach an agreement on their own. This ensures that both sides have a clear process to follow, which can lead to quicker resolutions and reduce the likelihood of strikes or other disruptive actions.
• Evaluate the impact of arbitration on the relationship between labor unions and management during major labor disputes.
  • The impact of arbitration on the relationship between labor unions and management during major labor disputes is profound. By providing a neutral ground for resolving conflicts, arbitration can help build trust between both parties. Successful arbitration outcomes can lead to more collaborative relationships, while failures may strain interactions further. Overall, when managed effectively, arbitration can facilitate ongoing dialogue and improve future negotiations between labor unions and management.

Related terms

mediation: A voluntary process where a neutral third party helps disputing parties communicate and negotiate to reach a mutually acceptable solution.

collective bargaining: The process of negotiation between employers and a group of employees aimed at reaching agreements regarding wages, working conditions, and other employment terms.

strike: A work stoppage initiated by employees as a form of protest against their employer, usually to demand better working conditions or pay.