Arbitration is a dispute resolution process in which a neutral third party decides the outcome of a disagreement between two parties. In the case of collective bargaining agreements, arbitration can be used to resolve disputes between unions and employers.
When a union and an employer enter into a collective bargaining agreement, they agree to a set of terms and conditions that will govern their relationship for a specified period of time. This agreement may cover issues such as wages, benefits, working conditions, and workplace safety.
However, despite the best intentions of both parties, disputes may arise during the course of the agreement. In these cases, the parties may turn to arbitration as a way to resolve their differences.
Under a collective bargaining agreement, arbitration is typically referred to as the final step in the dispute resolution process. This means that the parties are required to exhaust all other options for resolving the dispute before turning to arbitration.
The process of arbitration typically involves a hearing in which both parties present their case to a neutral arbitrator. The arbitrator will then consider the evidence presented by both sides and make a final decision on the dispute.
There are a number of reasons why arbitration can be an effective way to resolve disputes under a collective bargaining agreement. For one thing, it can be faster and less expensive than going to court. Additionally, the parties have more control over the outcome of the dispute since they are able to select the arbitrator and agree to the terms of the arbitration process.
However, there are also some potential downsides to using arbitration under a collective bargaining agreement. For one thing, the decision of the arbitrator is generally final and binding, meaning that the parties have little recourse if they are unhappy with the outcome. Additionally, the arbitrator`s decision may be difficult to overturn in court, even if there are significant legal errors or other issues with the decision.
Despite these potential drawbacks, arbitration can be an effective way for unions and employers to resolve disputes under a collective bargaining agreement. By following the agreed-upon process for arbitration, both parties can work towards a resolution that is fair and mutually beneficial.