When a labor dispute arises between an employer and a union, arbitration is often the preferred method of resolution. Once it is determined that an issue needs to be arbitrated, there are a number of factors to consider before the actual arbitration hearing takes place.

Disclosing Information

Although arbitration is like a trial in that there is a decisive ruling (i.e., a winner and a loser), the spirit of arbitration is generally seen as more cooperative. In the case of labor disputes, this is especially true because the disputing parties-company and union-need to maintain a working relationship before, during, and after the arbitration proceedings. For this reason, it is expected that both parties will disclose all relevant information to one another early in the process. In addition to helping preserve the relationship, a policy of disclosure early in the grievance process may allow for a resolution to be found short of arbitration.

Selecting and Arbitrator

Unlike the participants in a trial, parties seeking dispute resolution through arbitration will have some say in who hears, and ultimately decides, the case. In the case of labor disputes, the labor contract itself may include provisions for an arbitrator. This may be an agreement to use a single individual for all arbitration hearings or to obtain one through a third-party appointing agency.

When there are no preexisting arrangements for selecting an arbitrator, the selection process itself can take on a notable level of importance. This is true because there are differences (both real and perceived) in how arbitrators make their decisions. Although it is rare that an arbitrator will have a detectable bias towards one group over another, it is to the benefit of both parties to have an understanding of what factors a particular arbitrator weighs in making his decisions. (For example, knowing that an arbitrator pays particular attention to the exact wording of the employment contract guides those preparing the case to address that issue sufficiently.) It can also be helpful to research the way the arbitrator handles the actual hearing, such as the admission of evidence and objections.

Scheduling a Hearing

There are a number of factors to be considered when scheduling the actual arbitration hearing. The first is the extent to which both parties need time to gather evidence and prepare a case. This aspect is determined in large part by the nature of the grievance, but also by the nature of representation. That is, parties who make use of outside representation for the hearing will need additional preparation time. Finally, and not to be forgotten, the parties must schedule at the availability of the arbitrator. Overall, it is to the benefit of both parties to reach a resolution sooner rather than later; a timely hearing should not be sacrificed for the sake of over-preparation.

Selecting a Venue

Although the convenience factor may encourage a practice of holding arbitration hearings in the company conference room, many parties find it preferable to use an outside, neutral location. This location can be anywhere from a conference room at a local hotel to the offices of the arbitrator to rooms provided by a neutral agency (such as the American Arbitration Association). Cost, of course, is often a consideration. The number of witnesses that will be called and whether or not they will be sequestered is another concern. In the end, the site should be accessible and make both parties feel comfortable.

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