varying classifications of arbitration

Classifications of Arbitration.

1. Commercial Arbitration is the most commonly used arbitration. Just as it sounds, it is used in a dispute between two commercial enterprises.
2. Consumer Arbitration surrounds disputes between a consumer and a supplier of goods or services.
3. Labor Arbitration involves the settlement of employment related disputes. This form or arbitration can be divided into two main categories: Rights Arbitration and Interest Arbitration.
   • Rights Arbitration (a.k.a. Grievance Arbitration) deals with the allegation that an existing collective agreement has been violated or misinterpreted.  Various legislatures require that the parties who enter into a collective agreement set out a procedure for the handling of disputes and differences. The idea is that parties should be obliged to meet at different steps in their own specific grievance procedure to review and discuss the grievance. However, the fact is that the parties themselves cannot resolve many disputes and for this reason arbitration is necessary so that the matter may be determined. Typical arbitration awards deal with a complaint that a specific item in collective agreement has been violated.
   • Interest Arbitration (a.k.a. Contract Arbitration) is normally imposed by a statute, and involves adjudication on the terms and conditions of employment to be contained in a resulting collective agreement. Since statutes, usually prohibit a legal strike, or lock out, these contract disputes must be resolved somehow; in this case by interest arbitration. For example, collective bargaining in a new collective agreement covering a fire force or a hospital may break down into an irresolvable deadlock. The contractual matters still in dispute between the parties would be put to an interest arbitrator or tribunal for a ruling and determination, which would then form the relevant provisions of the collective agreement between the two parties.

The kinds of labor disputes taken to an arbitrator are as many and as different as the wide range of decisions and actions that effect employers, employees and trade unions. Liability can span from cents to millions, and there can be a solitary griever or a union of grievers.  It is also worthy to note that some labor disputes employ ‘med/arb’ to resolve their differences as opposed to straight arbitration. Med/arb takes place when disputants agree from the start that if mediation fails to result in agreement the mediator, or another neutral third party, will act as arbitrator and be empowered to reach a binding decision for disputants.