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Three kinds of arbitration

Prof. Maris Stella (Star) Swift uses a Prezi to explain grievance arbitration, interest arbitration and non-union arbitration. All 3 types of arbitration are used by employers and employees.

Prof. Swift

on 23 September 2014

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Transcript of Three kinds of arbitration

3 types of employment arbitration
CBA = Collective Bargaining Agreement between
employer and union
Employer terminates an employee for violating a rule (i.e. fighting).

Union files a grievance for the terminated employee claiming the employer did not have just cause for the termination.

- Just cause is required by the CBA (employer must have a very good reason for the termination).

- An arbitrator (neutral) must decide whether or not the employer had just cause in accordance w/the CBA.
Grievance Arbitration
When the parties cannot reach an agreement and settle a CBA what do they do?

In some industries they hire an "interest arbitrator" who settles the CBA for the parties.

For instance, in sports the owners and the players allow an arbitator to determine the salary of a player.

In Michigan, police and fire fighters who cannot settle a CBA
pick an arbitrator to settle the K. A state law gives the arb the power to hear the case and make the CBA.
Interest Arbitration
The parties allow the arbitrator to make the CBA!
Remember the arb award is the CBA
when the parties use interest arbitration.
When there is no union but the employer still wants to use arbitration there is now arbitration for non-union employees.

Employers sometimes make the agreement to arbitrate employment disputes (rather than litigate) a condition of employment.

The arbitrator must conduct a fair hearing, s/he must be nuetral and s/he must have the power to grant any remedy that could awarded in a court of law.

The power for the arbitrator comes from the K between the employee and the employer. (There is no CBA)
Non-Union Employment Arbitration
interpret K
(cc) image by anemoneprojectors on Flickr
Interest arb -power could
come from a CBA or a law.
Compare the power of the arbitrator!
Grievance Arb - CBA gives power
Non-union arb
the contract between
the employer and employee grants the power to the arbitrator
Make K
arb job
arb power
cba or law
This has been a humnlaw production
Thanks for taking the time to think!

Full transcript