Arbitration

Arbitration

Many labor contracts have binding arbitration clauses.

Settling of a dispute by a neutral 3^rd party (arbitrator) who renders a legally-binding decision; usually an expert or well-respected government official. 

Recall the 1997 UPS strike when US. Labor Secretary Alexis Herman helped arbitrate the strike.

Arbitration Disadvantages

Results may be unpredictable because arbitrators do not have to follow precedent or rules of procedure or evidence.

Arbitrators do not have to issue written opinions.

Generally, no discovery available.

Arbitration Process

Case begins with a submission to an arbitrator. Next comes the hearing where parties present evidence and arguments. Finally, the arbitrator renders an award.

Courts are not involved in arbitration unless an arbitration clause in a contract needs enforcement.