Types of Arbitration
Grievance, Interest Arbitration, and Arbitration of Statutory Disputes
Grievance Arbitration is a procedure that is provided in a labor contract between a union and an employer. A grievance is a claim that the labor contract has been violated. A neutral arbitrator is chosen by the parties to resolve the dispute. The arbitration award is binding on both parties.
Interest Arbitration is similar to fact finding in that a neutral party listens to both parties and then states, in writing, how to settle the collective bargaining agreement. Interest arbitration for police and fire employees in Michigan, known as Act 312 arbitration, is binding on the parties. The award in essence is the labor agreement for the parties. For a more thorough description of interest arbitration, watch the video below.
Arbitration Of Statutory Disputes
Arbitration of Statutory Disputes is the resolution of disputes, such as discrimination claims, through arbitration. This type of arbitration is usually the result of a non-union contract agreement. Some employers require their employees to sign agreements stating that they will use arbitration rather than litigation for any disputes involving their employment. These agreements between the employer and employee are typically held by the courts to be binding on both parties.