labour arbitration

Labor arbitration is a method for resolving disputes between management and labor unions, typically as a final step after other settlement attempts have failed. It is distinct from commercial arbitration and serves to settle or prevent strikes.1

There are two main types of labor arbitration:
* Arbitration of rights: This involves disputes over the application of an existing labor contract. In the United States, this is common and often handles grievances related to discipline, discharge, working conditions, and benefits.1
* Arbitration of interests: This occurs during the negotiation of a new labor contract when parties cannot agree on terms. This is less common, as parties often prefer to avoid lockouts and strikes.1

Negotiation, or collective bargaining, is the process where worker and employer representatives discuss and agree on employment conditions, including wages, hiring, and working hours. Arbitration provides a neutral third party to make a binding decision when negotiations fail.21