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How can compulsory arbitration be used in transportation and public-utility labour disputes?

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Arbitration Members of the Permanent Court of Arbitration.

Compulsory arbitration is a mechanism directed by legislative fiat to resolve industrial disputes, often serving as a controversial alternative to strikes or lockouts. In the context of transportation and public utilities, it is utilized as a tool to protect the public interest.1

Transportation Industry: Compulsory arbitration is frequently favored in this sector because work stoppages can cause significant public inconvenience.1
Public-Utilities Sector: It is employed in this field when labor disputes pose an immediate danger to public health and safety.1

While compulsory arbitration is used to maintain essential services, its application remains legally complex. In some jurisdictions within the United States, it has been declared unconstitutional, though it remains a standard procedure for resolving disputes involving municipal employees in certain U.S. cities. By mandating a resolution, the process seeks to prevent the societal disruption that would otherwise result from prolonged labor conflicts in these critical infrastructure areas.1