LABOR ARBITRATION

3 definitions found across Law Mind sources

LABOR ARBITRATIONAuthored
The Law Mind • 1079 words
Definition
Labor arbitration is a method of resolving disputes between employers and employees (or their unions) through submission to a neutral third party — an arbitrator or arbitration panel — whose decision may be binding or advisory depending on the governing agreement or statute. The arbitrator hears evidence and argument from both sides and issues an award that resolves the dispute without resort to court litigation or work stoppages. Labor arbitration encompasses two distinct but related contexts: 1. Grievance arbitration: Resolution of disputes arising under an existing collective bargaining agreement (CBA). A union typically files a grievance alleging the employer has violated the CBA; if the grievance is not resolved through negotiation, it proceeds to arbitration. The arbitrator's authority is defined by and limited to the contract. 2. Interest arbitration: Resolution of disputes over the terms of a new or renewed collective bargaining agreement — i.e., what the contract should say — when negotiations break down. This form is less common in private employment but is frequently mandated by statute for public employees such as police, firefighters, and teachers who are prohibited from striking. ---
Common Confusion
Labor arbitration is often conflated with commercial arbitration, but the two operate under different legal frameworks and with different substantive traditions. Commercial arbitration is governed primarily by the Federal Arbitration Act (FAA); labor arbitration in the unionized private sector is governed by Section 301 of the Labor Management Relations Act (LMRA) and a body of federal common law developed under it. Courts have historically given labor arbitration awards extreme deference — overturning them only on narrow grounds — reflecting a federal policy favoring private resolution of labor disputes. The FAA's more expansive grounds for review do not generally apply to CBA-based labor arbitration, a distinction that matters enormously in post-award litigation. Labor arbitration should also be distinguished from mediation. A mediator facilitates negotiation but has no authority to impose a result. An arbitrator decides. ---
Recognized Forms
/SUBTYPES Grievance Arbitration: Dispute resolution under an existing CBA. The most common form in private-sector labor law. Interest Arbitration: Dispute resolution over the terms of a future contract. Common in public-sector employment. May take the form of conventional arbitration (arbitrator crafts any award) or final-offer arbitration (arbitrator must choose one party's last proposal in full, also called "baseball arbitration"). Compulsory Arbitration: Arbitration mandated by statute, typically for essential public services. Participation is not voluntary. Voluntary Arbitration: Arbitration agreed to by the parties, usually through a CBA clause. Expedited Arbitration: Streamlined procedure for smaller or time-sensitive grievances, used by some industries and agreed to in CBAs. ---
Why It Matters in Research
The legal framework governing labor arbitration shifted dramatically across the twentieth century, and sources must be read against that trajectory. Bouvier's reflects the late nineteenth- and early twentieth-century landscape, in which state boards of arbitration and federal commissions for railroads were novel statutory experiments — not a mature body of federal common law. The modern framework — built primarily on the LMRA (1947), the Steelworkers Trilogy (1960), and subsequent Supreme Court decisions — does not appear in historical dictionaries and must be sourced elsewhere. Researchers working in the corpus should watch for several traps: Railroad exceptionalism: Federal labor arbitration law began in the railroad industry. The Railway Labor Act (1926) created its own mandatory arbitration scheme for railroads (and later airlines), which remains separate from the NLRA/LMRA framework. Bouvier's reference to "railroad and transportation companies" reflects this early statutory moment, not the general rule. Public vs. private sector: Pre-New Deal sources discuss labor arbitration almost entirely in the private-sector context. The explosive growth of public-sector collective bargaining and interest arbitration is a post-1960s phenomenon and will be invisible in historical dictionaries. The arbitrability question: Whether a particular dispute is subject to arbitration at all — and who decides that question, the arbitrator or the court — is a live and complex issue. The encyclopedia entry on delegation clauses and unconscionability is essential reading for researchers encountering post-award challenges. Enforceability of awards: Historical sources may suggest labor arbitration awards were advisory or difficult to enforce. Federal law now provides strong enforcement mechanisms under Section 301, and courts apply a highly deferential standard of review. Do not assume a historical description of weak enforceability describes current law. ---
Historical Dictionary Support
Bouvier's Law Dictionary treats labor arbitration briefly and directs readers primarily to companion entries on fisheries and international arbitration, suggesting that in the classical common law dictionary tradition, labor arbitration was not yet a well-developed independent doctrine. The substantive entry Bouvier's provides is accurate for its time: state boards of arbitration existed in many states, and a federal statute addressed railroads specifically. What Bouvier's cannot capture is the federalization and judicialization of the field that followed — the NLRA (1935), the LMRA (1947), the Steelworkers Trilogy, and the Supreme Court's construction of a federal common law of collective bargaining agreements. Bouvier's framing of labor arbitration as "investigation and determination of disputed matters between employers and employes" is technically accurate but understates the procedural formality and legal complexity of modern arbitration proceedings, which often involve briefing, evidentiary hearings, and written opinions that look more like judicial proceedings than investigations. No major divergence exists between historical sources here — the divergence is between historical sources and modern law, not among the historical sources themselves. ---
Jurisdictional Note
Private-sector labor arbitration under a CBA is primarily a matter of federal law (LMRA Section 301), and federal courts apply a uniform, highly deferential standard of review. Public-sector labor arbitration varies significantly by state: some states mandate interest arbitration for certain categories of employees; others prohibit it; and the procedural rules, grounds for appeal, and enforceability of awards differ widely. Researchers working on public-sector disputes must identify the applicable state statute rather than relying on federal doctrine. ---
Encyclopedia Cross-Reference
The Law Mind Employment & Labor Law Encyclopedia: "The Railway Labor Act and Transportation Industry Labor Law" The Law Mind Civil Procedure & Evidence Encyclopedia: "Arbitration — Arbitrability, Delegation Clauses, and Unconscionability" ---
Related Terms
Arbitration Collective Bargaining Agreement Grievance Procedure Interest Arbitration Grievance Arbitration Final-Offer Arbitration Labor Management Relations Act (Taft-Hartley Act) National Labor Relations Act Railway Labor Act Mediation Unfair Labor Practice Strike Labor Board Compulsory Arbitration Arbitrability
LABOR ARBITRATIONcrossref
Bouvier's Law Dictionary • 1928
See FISHERIES ARBI- TRATION; INTERNATIONAL ARBITRATION.
LABOR ARBITRATIONmain
Bouvier's Law Dictionary • 1928
The in- vestigation and determination of disputed matters between employers and employes. In many of the states, state boards of arbitration have been provided by statute for the hearing and adjustment of differ- ences between employers and their em- ployes, and a recent federal statute apply- ing only to railroad and transportation companies authorizes the executive to ap- point commissioners for such investigation and to determine the best methods of right- ing the grievances of the employes; U. S. Laws, 1888, ch. 1063. In Missouri, Colorado, and North Dakota the functions of the state board of arbitra- tion are filled by the labor commissioner, and in New York, Ohio, New Jersey, Cal- ifornia, Maryland, Texas, Massachusetts, Wisconsin, and Montana, there are statu- tory provisions for private boards of arbi- tration. The constitution of Wyoming provides that appeals from the decisions of compulsory boards of arbitration may be taken to the supreme court of the state, and the manner of taking such appeals must be prescribed by law; Const. Wyo. ch. 19, sec. 2. Objections to bringing labor troubles be- fore the state board of arbitration must be urged before such board before application to the courts; 47 La. Ann. 874; and it de- volves on the board in the first instance to pass on questions of regularity and com- pliance with statutory provisions in the steps taken to bring the matter to its notice; id. See Stimson, Lab. L. §§ 67, 68. It is a curious fact that during the struggle in this country to devise some effective system of labor arbitration, little or no attention seems to have been paid to some very successful efforts in that direc tion in England which long antedated any Ameri- can legislation. At a very early period the regula- tion of wages was controlled by two masters and two journeymen, or, in default of agreement, by a magistrate after hearing both sides, but this was terminated by the separation of the masters and journeymen into two classes, and thereafter wages were fixed either by the employers or the magis- trates. The latter system prevailed under the ap- prenticeship law of Elizabeth, and this continued until early in the eighteenth century, except in the cotton factories, which were not within the law. In this industry, there was satisfactory regulation by a joint committee of laborers and employers, but to- wards the latter end of the eighteenth century, the latter obtained general control and the apprentice law was repealed. From then until about 1860, this condition remained undisturbed except by frequent petitions to parliament, although in the book print- ing business the trades unions secured an arrange- ment for settling price lists by a joint committee of employers and laborers, which was in operation with good success since 1805. In 1860 the system of arbitration and agreement originated by a manufacturer, Mr. Mundella, suc- cessfully dealt with the labor problem in the vari- ous branches of trade involved lved in the stocking weaving and glove industries of the three counties of Nottingham, Leicestershire, and Derbyshire. The system, in brief, provided for a court of arbitration and agreement to decide every question relative to wages. It consisted of nine employers and nine laborers, selected respectively by an assembly of their own class for one year. The court had a reg- ular organization with a standing executive com- mittee by which all disputes were disposed of so far as practicable, the final judgment, however, being entered by the court. The two interests involved negotiated with each other on perfect equality and the decisions were binding. Under this system, there was no umpire and no provision for the exe- cution of the judgment, the reliance being entirely upon the moral force of the statute, conscience, and the pressure of public opinion. The practical work- ing of these courts was very successful and, quoting Mr. Mundella, July 4, 1808, "during eight years we had not a single strike, and never in the history of our city and our industry did there exist such a hearty good understanding between employers and laborers as now." The rules may be found in de- tail in chap. 18 of The Relation of Labor to the Law of To-day, by Brentano, translated by Porter Sher- man, from which the historical facts here stated are mainly taken. Another system of courts of arbitration and agree- ment was that of Rupert Kettle, a judge of the county court of Worcestershire; the statutes drawn by him were adopted by the employers and laborers in the building trades in Wolverhampton. They were in their main features similar to the Mundella courts, but differed from the latter in the funda- mental point of providing an impartial umpire, and through legal provisions, the judgments were made binding in law. These provisions, however, were but seldom required in practice, as the presence of an impartial umpire had a tendency to produce an agreement without calling upon him; id. The re- sult o

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