What is arbitration in the context of union contracts?

Arbitration is a formal process utilized in the context of union contracts to resolve disputes that arise between the union and management. It involves the engagement of an impartial third party, known as an arbitrator, who listens to both sides of the dispute and then makes a binding decision based on the evidence presented. This process is essential in labor relations because it provides a structured and legal framework that helps avoid prolonged conflicts, ensuring that issues are settled fairly and efficiently.

The involvement of a neutral arbitrator is crucial as it guarantees that the decision-making process is objective, rather than influenced by the biases that may exist within the involved parties. This method helps maintain workplace harmony, as both union members and management commit to abiding by the arbitrator's decision, thus preventing disputes from escalating into strikes or other disruptions. Arbitration is often included as a clause in collective bargaining agreements, highlighting its importance in facilitating effective labor-management relations.