Legal Definitions - grievance arbitration

Grievance arbitration is a formal process used to resolve disputes, typically in a workplace setting, that arise from the interpretation or application of a collective bargaining agreement. A collective bargaining agreement is a contract between an employer and a labor union that outlines terms and conditions of employment.

When an employee or a union believes that the collective bargaining agreement has been violated—for instance, regarding wages, working conditions, or disciplinary actions—they can file a formal complaint known as a "grievance." If this grievance cannot be resolved through internal discussions and negotiation between the employer and the union, it may proceed to grievance arbitration.

In grievance arbitration, a neutral third party, called an arbitrator, is chosen to hear the arguments and evidence presented by both the employer and the union. The arbitrator then makes a binding decision to resolve the dispute, which both parties are legally obligated to follow. This process serves as an alternative to litigation in court for resolving labor-management disputes.

• Example 1: Disciplinary Action

  A manufacturing company fires a unionized employee for alleged insubordination. The union believes the company did not have "just cause" for termination, as required by their collective bargaining agreement, arguing that the evidence was insufficient or the disciplinary process outlined in the contract was not properly followed. After internal discussions fail to resolve the dispute, the union refers the matter to grievance arbitration. An independent arbitrator reviews the company's evidence of insubordination and the union's arguments regarding the contract's "just cause" clause and the fairness of the process. The arbitrator then issues a binding decision on whether the termination was justified under the terms of the agreement.

• Example 2: Wage Dispute

  A union representing sanitation workers files a grievance, claiming that the city is not properly calculating overtime pay for its members, leading to underpayment. The union points to a specific clause in their collective bargaining agreement that outlines the formula for overtime compensation. When the city and the union cannot agree on the correct interpretation of this clause, they submit the dispute to grievance arbitration. The arbitrator examines the language of the collective bargaining agreement, hears arguments from both sides about the intent and application of the clause, and determines the correct method for calculating overtime pay, issuing a binding decision that the city must implement.

• Example 3: Work Assignment Dispute

  A union representing airline mechanics alleges that the airline is assigning certain routine maintenance tasks, traditionally performed by union members, to non-union contractors. The union argues this violates a "scope of work" clause in their collective bargaining agreement, which reserves specific types of maintenance tasks for union employees. After the union's initial grievance and subsequent negotiations with the airline fail to resolve the issue, they move to grievance arbitration. An independent arbitrator hears testimony and reviews documents from both the union and the airline to interpret the "scope of work" clause and decide whether the outsourcing of tasks violates the collective bargaining agreement.