Arbitration

According to the Webster’s Dictionary arbitration is a noun that is described as the “process by which a third party, whose jurisdiction rests on an agreement between the disputing parties, resolves a legal dispute by enforcing an enforceable decision.” (websters-online-dictionary.org). Depending on the collective agreement the case may require an arbitrator or an arbitrator board. It should be noted that arbitrators are not bound by precedents, however they may have an impact on the final decision. The reason for this varies, but a couple of examples include various opinions of the arbitrators, and varying levels of evidence presented.

Arbitration can be divided into two categories. The first is rights arbitration, otherwise termed as a grievance. This method is utilised to rectify disputes relating to the agreement. For example, if an employee was terminated and no just cause was provided. The second form is interest arbitration where the disputing parties are unable to negotiate a contract in terms of the collective agreement. Interest arbitration is commonly used in the public sector such as police and fire, where strikes are not allowed. (Suffield, L. Labour Relations, pg172, 2005)

Although there are no concrete qualifications or experience required for an arbitrator, a legal background is obviously beneficial, however some jurisdictions may have specific individuals devoted to various fields. The Ontario Federation of Labour is a survey that lists arbitrators with their specialties in over 50 cases, such as discharge, discipline, job postings, to name a few. This information details to which party was given presence, the union or the employer. (Suffield, L., pg.172)

Arbitration does pose numerous advantages including cheaper fares by thousands of dollars opposed to litigation.