Arbitration
A final, binding hearing before a neutral third party that resolves grievances unresolved through the contractual steps.
Full definition
Arbitration is the final step in most contractual grievance procedures. After internal steps fail to resolve a dispute, either party can demand the case go before a neutral arbitrator — typically selected from a panel maintained by the American Arbitration Association (AAA) or the Federal Mediation and Conciliation Service (FMCS). The arbitrator hears evidence and arguments from both sides, then issues a written award that is final and binding on both parties. Courts generally enforce arbitration awards under the Federal Arbitration Act and Steelworkers Trilogy doctrine, with only narrow grounds for vacatur (fraud, manifest disregard of the contract, etc.). Arbitration is expensive — typically $5,000–$25,000+ per case in arbitrator fees alone — so case selection matters.
Related terms
Grievance
A formal complaint that the employer has violated a provision of the CBA, past practice, or applicable law.
Just Cause
The contractual standard requiring management to have a legitimate, proportionate, and procedurally fair reason for discipline.
Collective Bargaining Agreement (CBA)
A legally binding contract negotiated between a union and an employer that governs wages, hours, and conditions of employment.
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