A more thorough explanation:

Definition: Grievance arbitration is a method of resolving disputes between two parties, usually an employer and an employee, over the interpretation or violation of an existing contract. It involves a neutral third party, called an arbitrator, who listens to both sides and makes a final decision that is binding.

Examples:

• An employee files a grievance against their employer for not following the terms of their collective bargaining agreement, such as not providing a promised raise or denying a requested time off. The case goes to grievance arbitration, where an arbitrator listens to both sides and makes a final decision on whether the employer violated the contract and what should be done to remedy the situation.
• A union files a grievance against a company for laying off workers without proper notice or compensation. The case goes to grievance arbitration, where an arbitrator decides whether the company violated the union contract and what should be done to compensate the affected workers.

These examples illustrate how grievance arbitration is used to resolve disputes between employers and employees over the interpretation or violation of a contract. The arbitrator listens to both sides and makes a final decision that is binding, which helps to avoid costly and time-consuming litigation in court.