Grievance arbitration procedure: Overview, definition, and example
What is a grievance arbitration procedure?
A grievance arbitration procedure is a formal process used to resolve disputes between parties, typically in the context of labor or employment relationships. The procedure involves the use of a neutral third-party arbitrator to hear both sides of the grievance and make a binding decision. A "grievance" refers to a formal complaint made by an employee or a union regarding an alleged violation of the terms of an employment contract or collective bargaining agreement.
The grievance arbitration procedure is often used when the parties involved (usually employers and employees or unions) are unable to reach a resolution through informal discussions or negotiations. The process ensures that disputes are handled fairly and impartially, and it typically involves the submission of written grievances, a hearing where both parties present their case, and a final decision from the arbitrator.
Why is a grievance arbitration procedure important?
A grievance arbitration procedure is important because it provides a structured, formalized way to resolve disputes that may otherwise lead to prolonged conflict, workplace disruption, or litigation. Arbitration is often seen as a faster, more efficient alternative to court proceedings and is typically less formal and costly.
For employers, grievance arbitration provides a way to resolve labor disputes efficiently, maintain workplace harmony, and ensure that employee complaints are handled in a fair manner. For employees or unions, it ensures that their grievances are heard by an impartial third party, reducing the power imbalance between employees and employers.
Understanding grievance arbitration procedure through an example
Imagine a unionized workforce where employees have a grievance regarding unfair treatment in the workplace, such as a violation of the collective bargaining agreement regarding overtime pay. The union files a formal grievance, and the issue is brought to arbitration. An independent arbitrator is selected to hear both the union’s and the employer’s arguments. After reviewing the evidence and hearing both sides, the arbitrator makes a final, binding decision on whether the employer violated the agreement and what actions should be taken to remedy the situation.
In another example, an employee files a grievance against their employer alleging wrongful termination in violation of their contract. If informal discussions or mediation fail to resolve the issue, the matter is referred to arbitration. The arbitrator hears both the employee’s and employer’s sides, evaluates the evidence, and renders a decision that is legally binding for both parties.
An example of a grievance arbitration procedure clause
Here’s how a grievance arbitration procedure clause might appear in a union agreement or employment contract:
“In the event of a grievance arising under this Agreement, the Union or the Employee shall file a written grievance within [X] days of the incident. The grievance will be reviewed by the designated representative of the Employer and the Union. If the grievance remains unresolved after [X] days, the matter will be submitted to arbitration. An impartial arbitrator shall be selected by mutual agreement of the parties. The decision of the arbitrator shall be final and binding on both parties.”
Conclusion
A grievance arbitration procedure is a key mechanism for resolving disputes in labor and employment contexts, ensuring that grievances are addressed fairly and impartially through a structured process. Arbitration helps prevent prolonged conflicts, reduces the need for litigation, and provides both employers and employees with a clear method for resolving disputes. By establishing clear procedures for handling grievances and selecting neutral third parties, grievance arbitration promotes fairness, efficiency, and workplace harmony.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.