Why might a union and management use a permanent arbitrator during a collective-bargaining agreement?

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A union and management may appoint a permanent arbitrator for the duration of a collective-bargaining agreement to ensure consistent and informed dispute resolution.

This approach offers several distinct advantages:

  • Industry Expertise: A permanent arbitrator becomes intimately acquainted with the specific economic and financial aspects of the industry in question.1
  • Contextual Knowledge: They develop a deep familiarity with the historical relationship between the management and the union, allowing for more nuanced decision-making.1
  • Operational Stability: By utilizing a single, consistent neutral party, the parties can more effectively establish precedents for plant operations, even regarding minor issues such as break times.1

This system, which originated in the U.S. anthracite-coal industry, provides a stable framework for resolving grievances concerning the application of an existing contract.1