One of the most effective ways to solve labor disputes is to have mediation. However, there are instances when arbitration can be faster and be less acrimonious. Union arbitration decisions also have a bigger chance of being amicably accepted by both parties.
There are several reasons arbitration is used to help make a decision between two contending parties:
Impartial choice of arbitrators
In arbitration, both parties choose an arbitrator, and the two arbitrators choose a third arbitrator. This setup creates a tribunal, where the parties concerned know that their interests are properly represented in the decision.
Additionally, the final arbitration is always a vote of 2-1. On top of that, there is a chance that there will be concessions in the decision, which would make for both sides getting a win, at the least, making the decision more palatable.
Privacy of deliberation and negotiations
During mediation, both parties have to submit all the pertinent information, and in some instances, even irrelevant information. This may also be the case for arbitration, but in this case, all the information provided is kept in the strictest confidence. The parties and the arbitrators treat this as a private concern, and the deliberations are never leaked to the public.
Convenience and flexibility
The hearings and proceedings can be set at the convenience of both parties. The procedures can also be streamlined, fast-tracked, or simplified. There are times when both parties would want a speedy decision on the matter.
Finality in decision
This is both an advantage and a disadvantage. Due to the privacy and the composition of the arbitrators, the decision is final. There are no appeals court. Whatever decision is handed down cannot be escalated to a higher court or authority.
Arbitration is not foolproof. It is, however, a conscious decision by both parties to choose who they want to decide on their case. The costs of arbitration may be higher than that of other procedures, but both parties usually feel that they get a decision they can accept.