Arbitration

Definition

Arbitration is a method of dispute resolution where an impartial third party, known as an arbitrator, is selected to hear and decide on a dispute between two or more parties. It is a private and often less formal alternative to traditional litigation in a court of law.

5 Must Know Facts For Your Next Test

1. Arbitration is often used to resolve labor disputes between employers and unions as an alternative to strikes or lockouts.
2. Arbitrators are typically experts in the field of labor relations and are selected by mutual agreement between the employer and the union.
3. The arbitrator's decision is usually binding on both parties, meaning they must abide by the outcome of the arbitration process.
4. Arbitration can be a faster and less expensive method of dispute resolution compared to traditional litigation in court.
5. The use of arbitration in labor relations is governed by federal and state laws, such as the National Labor Relations Act (NLRA) and state labor relations acts.

Review Questions

• Explain how arbitration is used in the labor relations process to manage grievances and conflicts.
  • Arbitration is a key component of the labor relations process, particularly in the management of grievances and conflicts between employers and unions. When disputes arise, such as over the interpretation or application of a collective bargaining agreement, the parties can agree to submit the issue to an impartial arbitrator. The arbitrator, who is typically an expert in labor relations, will hear evidence from both sides and render a binding decision. This allows for a more efficient and less adversarial resolution of workplace conflicts compared to traditional litigation, which can be time-consuming and costly. Arbitration is often specified in the grievance procedures outlined in labor contracts as a means of providing a fair and expedient mechanism for resolving workplace disputes.
• Describe the role of arbitration in the legal environment of human resources and labor relations.
  • Arbitration is a significant component of the legal environment surrounding human resources and labor relations. Federal and state laws, such as the National Labor Relations Act, often mandate or encourage the use of arbitration as a means of resolving disputes between employers and unions. The legal framework governing arbitration, including the enforceability of arbitration agreements and the standards for reviewing arbitration decisions, can have a substantial impact on the rights and obligations of both employers and employees. Additionally, the legal precedents established through arbitration rulings can shape the interpretation and application of labor laws, collective bargaining agreements, and other HR policies and practices. Understanding the legal principles and regulations surrounding arbitration is crucial for HR professionals and labor relations specialists to effectively navigate the complex legal landscape and ensure compliance with relevant laws and regulations.
• Evaluate the advantages and disadvantages of using arbitration to manage grievances and conflicts in the context of labor relations.
  • Arbitration can offer several advantages in the management of grievances and conflicts in labor relations. It provides a more expedient and cost-effective alternative to traditional litigation, allowing for a timely resolution of disputes. The use of a neutral, expert arbitrator can also help to ensure a fair and impartial decision-making process, which can be particularly important in the often adversarial environment of labor-management relations. Additionally, the binding nature of arbitration decisions can help to promote stability and predictability in the labor relations environment. However, there are also potential drawbacks to consider. The private nature of arbitration proceedings can limit transparency and public oversight, and the finality of arbitration decisions can restrict the ability of parties to appeal or challenge the outcome. Furthermore, the selection of the arbitrator can be a point of contention, as both parties must agree on the individual. Ultimately, the decision to use arbitration in labor relations should be weighed against the specific circumstances and goals of the parties involved, as well as the broader legal and regulatory context.

Related terms

Mediation:

Mediation is a process where a neutral third party facilitates communication and negotiation between disputing parties to help them reach a mutually agreeable resolution.

Grievance Procedure:

A grievance procedure is a formal process outlined in a labor contract that allows employees to address and resolve workplace disputes or complaints.

Collective Bargaining:

Collective bargaining is the process where labor unions and employers negotiate the terms and conditions of employment, such as wages, benefits, and working conditions.