Britannica Sources used in this answer

What workplace disputes can be decided through labour arbitration?

Created from Britannica articles using AI. AI can make mistakes, so verify using Britannica articles.

The Code of Hammurabi diorite stela, with carved figures at the top showing Hammurabi seated with cuneiform inscriptions below. — Labour law Diorite stela inscribed with the Code of Hammurabi, 18th century bce.

In the context of labour law, labour arbitration is the process of referring disputes between management and labour unions to an impartial third party for final resolution. These disputes are generally categorized into two types:1

Arbitration of Rights

This concerns the application or interpretation of an existing collective-bargaining agreement. In the United States, this is the final step in a grievance procedure and may include:12
* Discipline and discharge: Complaints regarding employee penalties.2
* Working conditions: Violations of established workplace rules.2
* Compensation and benefits: Issues involving premium payments, incentive rates, overtime, vacations, holiday bonuses, and fringe benefits like pension or welfare plans.2
* Seniority rights: Disputes regarding the application of seniority.2
* Operational matters: Minor questions such as the use of company time for breaks.2

Arbitration of Interests

This involves disputes that arise during the negotiation of a new contract. While it serves as a method to settle or avoid strikes, it is rarely used because parties are often reluctant to surrender control over new contract terms to an arbitrator.13