How does interest arbitration work?


Interest arbitration, when the law allows for it, is a mechanism for resolving a bargaining dispute. When the employer and union negotiate to impasse on a mandatory subject of bargaining, the parties hire an impartial third party arbitrator. This arbitrator conducts a formal hearing in which the parties present their positions. The arbitrator then reviews the testimony and supporting evidence and decides on what the contract language should be by issuing an arbitration award.

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