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Tip Tuesday: What is the Difference Between Arbitrations?

June 1, 2021

People not directly involved in labor arbitrations do not always know that there are two types of arbitration – Interest Arbitration, and Grievance or Contract Interpretation Arbitration. What is the difference between the two types of arbitration?

Interest arbitration – An arbitrator determines the final provision(s) in a CBA such as scope of work, pay rates, specific work rules, insurance, or retirement benefits. Parties can agree ahead of negotiations that open issues will be resolved through binding arbitration, during the bargaining process to help resolve an impasse in negotiations.

Grievance arbitration – An arbitrator hears from the parties regarding how each side interprets a particular contract provision(s)/language that was negotiated by the parties. These disputes occur during the life of the contract and results from an employee or a union filing a grievance alleging that his/her rights, as specified in the contract, have been violated.

Did you know we have an arbitration award database with more than 8,000 full-text, searchable arbitration awards within the airline and passenger rail industry?