Legal Definitions - rights arbitration

Rights arbitration is a formal process, most commonly found in labor relations, where an independent and impartial third party (the arbitrator) resolves disputes concerning the interpretation or application of an existing agreement, such as a collective bargaining agreement or an employment contract. This type of arbitration focuses on grievances that arise from established rights, rules, and obligations already laid out in a contract or policy, rather than on negotiating new contract terms.

Here are some examples to illustrate rights arbitration:

• Dispute over Overtime Calculation: A manufacturing company's collective bargaining agreement with its union specifies how overtime should be calculated for shifts worked on weekends. When a new payroll system is implemented, some employees find their weekend overtime pay is lower than expected. The union files a grievance, arguing the company is misinterpreting the contract's overtime clause. If the company and union cannot resolve this through internal negotiations, they might proceed to rights arbitration. The arbitrator would then review the contract language, past practices, and arguments from both sides to determine the correct interpretation of the existing overtime rights.

• Challenge to Disciplinary Action: An employee at a retail chain is terminated for alleged insubordination. The employee's union believes the company did not follow the progressive discipline steps outlined in their collective bargaining agreement, which requires a written warning and suspension before termination for such an offense. The union files a grievance, asserting the company violated the employee's contractual rights regarding due process in disciplinary actions. If the grievance remains unresolved, an arbitrator would be called upon to decide whether the company applied the existing disciplinary policy and contractual terms correctly in this specific case.

• Seniority in Job Promotions: A public sector union contract states that for promotions, seniority will be the deciding factor among candidates who are "relatively equal" in qualifications. When a less senior employee is promoted over a more senior one, the senior employee's union files a grievance, arguing that the more senior employee was at least "relatively equal" in qualifications and therefore should have received the promotion based on their contractual seniority rights. Rights arbitration would involve the arbitrator evaluating the qualifications of both candidates and interpreting the meaning of "relatively equal" as defined by the existing contract to determine if the employer violated the senior employee's rights.