General Overview of Arbitration<br />
What is Arbitration?<br />Means to resolve disputes outside of court<br />Labor and Management present evidence<br />Arbit...
 Arbitration Uses<br />Commercial Arbitration: long used as substitute for court actions <br />International Arbitration: ...
 Simple Mechanics of Arbitration<br />Arbitration authorized by Collective Bargaining Agreement (CBA)<br />Parties select ...
Aristotle’s Quote About Arbitration<br />“For an arbitrator goes by equity of a case, a judge by the law, and arbitration ...
Chief Justice Warren E. Burger<br />Quote:<br />“I cannot emphasize too strongly to those in business and in industry…that...
Voluntary Arbitration Use<br />Voluntary form of arbitration terms<br />Private<br />Commercial <br />Contractual <br />Ex...
George Washington’s Will<br />	“ I hope, and trust, that no disputes will arise concerning them;…..my will and direction e...
Courts and Arbitration<br />Courts originally did not favor arbitration<br />Most state and federal courts now support arb...
Procedures<br />Arbitration not required to follow court procedures<br />Court may compel a refusing party to arbitrate<br...
Process<br /><ul><li>Process design determined by parties
Use of Administrative Agency Rules
Pre-hearing conference agenda</li></li></ul><li>Arbitration Setting<br />Same look and feel of court trial<br />Opening st...
Timeliness<br />Parties may make arbitration relatively quick and inexpensive compared to litigation<br />However, bulk of...
Arbitration Costs<br /><ul><li>Arbitrator fees can add up
Multiple Days of hearing are expensive
Arbitrator’s expenses for travel, meals and lodging</li></li></ul><li>Grievance Mediation<br />Hybrid variation between me...
Advantages Arbitration Over Litigation<br />Court costly, prolonged and technical procedures of courts not well adapted to...
Other Arbitration Considerations<br />Prompt compliance with the award obtained in most cases<br />Court actions seeking c...
Labor Arbitration Observation<br />Arbitration….is a school, an arena, a theatre. Everyone both participates and observes....
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Arbitration Overview

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This video, with audio, is a lecture presented in a college Labor Studies class. The content provides a general interview about arbitration.

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Arbitration Overview

  1. 1. General Overview of Arbitration<br />
  2. 2. What is Arbitration?<br />Means to resolve disputes outside of court<br />Labor and Management present evidence<br />Arbitrator makes final and binding ruling<br />Arbitration is different from mediation<br />
  3. 3. Arbitration Uses<br />Commercial Arbitration: long used as substitute for court actions <br />International Arbitration: used as settlement of differences between nations<br />Labor Arbitration: began during late 19th century<br />Labor Arbitration advance rapidly after U.S. became involved in World War II <br />
  4. 4. Simple Mechanics of Arbitration<br />Arbitration authorized by Collective Bargaining Agreement (CBA)<br />Parties select arbitrator<br />Arbitrator and parties set hearing date<br />Hearing Held<br />Decision<br />Final and Binding Award<br />Enforcement<br />
  5. 5. Aristotle’s Quote About Arbitration<br />“For an arbitrator goes by equity of a case, a judge by the law, and arbitration was invented with the express purpose of securing full power for equity”<br />Image of Aristotle<br />
  6. 6. Chief Justice Warren E. Burger<br />Quote:<br />“I cannot emphasize too strongly to those in business and in industry…that every private contract of real consequence to the parties ought to be treated as ‘candidate’ for binding arbitration”<br />Chief Justice Warren E. Burger<br />Served on Supreme Court 1969 to 1986<br />
  7. 7. Voluntary Arbitration Use<br />Voluntary form of arbitration terms<br />Private<br />Commercial <br />Contractual <br />Example Industries using voluntary arbitration<br />Maritime <br />Securities<br />Labor <br />Medical<br />Construction<br />
  8. 8. George Washington’s Will<br /> “ I hope, and trust, that no disputes will arise concerning them;…..my will and direction expressly is, that all disputes shall be decided by three impartial and intelligent men, known for their probity and good understanding…and such decision is, to all intents and purposes to be binding on the parties as if it had been given in the Supreme Court of the United States.”<br />
  9. 9. Courts and Arbitration<br />Courts originally did not favor arbitration<br />Most state and federal courts now support arbitration<br />Routinely enforce arbitration awards<br />Federal Arbitration Act and State Acts enhanced support<br />Courts accept arbitration as alternative to litigation<br />
  10. 10. Procedures<br />Arbitration not required to follow court procedures<br />Court may compel a refusing party to arbitrate<br /> Arbitration usually coordinated by an agency<br />Agency coordinates various procedural activities<br />
  11. 11. Process<br /><ul><li>Process design determined by parties
  12. 12. Use of Administrative Agency Rules
  13. 13. Pre-hearing conference agenda</li></li></ul><li>Arbitration Setting<br />Same look and feel of court trial<br />Opening statements<br />Introduction of evidence<br />Witness testimony <br />Arbitrator more active role<br />Hearings are usually private<br />
  14. 14. Timeliness<br />Parties may make arbitration relatively quick and inexpensive compared to litigation<br />However, bulk of arbitration cases requires several weeks or months<br />Arbitration issues are becoming increasingly complex<br />Time requirements increase with complexity<br />Parties and/or selected arbitrator may not be readily available<br />Nonetheless Arbitration is speedier than litigation <br />
  15. 15. Arbitration Costs<br /><ul><li>Arbitrator fees can add up
  16. 16. Multiple Days of hearing are expensive
  17. 17. Arbitrator’s expenses for travel, meals and lodging</li></li></ul><li>Grievance Mediation<br />Hybrid variation between mediation and arbitration<br />Advanced in recent years because perception that arbitration is excessively delayed, expensive, or formalistic<br />Occurs after final step – prior to arbitration<br />Mediator may not act as arbitrator<br />Mediation discussion may not be used in arbitration<br />Common practice in the public sector<br />
  18. 18. Advantages Arbitration Over Litigation<br />Court costly, prolonged and technical procedures of courts not well adapted to labor-mgt. relations<br />Courts are not often versed in labor relation problems<br />Supreme Court stated in the Steelworkers case:<br /> “The labor arbitrator performs functions which are not normal to the courts; the considerations which help him fashion judgments may indeed be foreign to the competence of the courts”. <br />
  19. 19. Other Arbitration Considerations<br />Prompt compliance with the award obtained in most cases<br />Court actions seeking compliance or vacation of award is infrequent<br /> Discovery rights, attorney fees, punitive damages and supervised equity relief are typically unavailable <br />Lack precedential value in development of the law of collective bargaining<br />Faulty final and binding decisions may not be subject to review as are trial judge decisions<br />
  20. 20. Labor Arbitration Observation<br />Arbitration….is a school, an arena, a theatre. Everyone both participates and observes. The whole company of actors-arbitrator, union and employer officials, the…[grievant], and the witnesses (mostly employees)—sits at one table. Argument, assertion, testimony, charge and countercharge, even angry abuse-sometimes spontaneous, sometimes “for the record” –flow freely in quick continuous intercourse. The arbitrator may let the discussion takes its head for a moment, then rein it in; an occasional question, a request for clarification……<br /> Labor Arbitration and the Individual Worker<br />Jaffe, Annals of The American Academy of Political and Social Science 34, 40-41 (May 1953)<br />
  21. 21. Arbitration - Substitute<br /> To consider… arbitration as a substitute for court litigation or as the consideration for a n0-strike pledge is to take a foreshortened view of it. In a sense it is a substitute for both—but in the sense in which a transport airplane is a substitute for a stagecoach. The arbitration is an integral part of the system of self-government. And the system is designed to aid management in its quest for efficiency, to assist union leadership in its participation in the enterprise, and to secure justice for the employees.<br />Shulman, Reason, Contract, and Law in Labor Relations, 68 Harv. L. Rev.999, 1024 (1955)<br />
  22. 22. Conclusion<br />Next Lesson: Examine the Rules of the Road as a Union Advocate <br />Read Chapter 1 of the Union Steward’s Guide Textbook<br />Be sure to take this lesson’s practice quiz, read the case study, complete the assignments, and participate in the forum.<br />

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