Originally from Fundamentals of Labor Arbitration

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1:01 INTRODUCTION

Collective bargaining has flourished in the United States as a method of resolving issues relating to the conditions of employment. National labor laws have encouraged this process. For settling disputes over the interpretation or application of collective bargaining agreements, unions and employers have agreed to procedures that usually take the form of joint grievance discussions terminating in arbitration if the discussions do not produce a resolution of the grievance. Grievance arbitration procedures are found in most bargaining contracts. Hundreds of thousands of labor disputes have been resolved using labor arbitration with limited judicial intervention. Arbitration is a method of dispute resolution in which the parties to a dispute submit the dispute to an impartial person or persons known as arbitrators. In arbitration, an arbitrator makes a decision based on the evidence and arguments presented by the parties at the arbitration hearing.

^{As an impartial dispute resolution organization that administers labor and other forms of arbitration proceedings, the American Arbitration Association wants the arbitration process to be fair and efficient. Accordingly, it encourages parties to help make arbitration work more efficiently and in a cost-effective way. Used intelligently and prudently, labor arbitration can continue to serve the needs of unions, employees and employers. Not only can it resolve disputes, it can improve communication between union leadership and management and between employees and employers.}