Arbitration Grievances which are not satisfactorily settled under negotiated grievance procedures are subject to arbitration. Arbitration is a process in which an impartial third party, the arbitrator, is chosen by the union and management to render a final and binding award after hearing and reviewing the evidence.
Arbitration can be costly, time-consuming, and have unpredictable results.
Consequently, as in all dispute resolution processes, the parties to the dispute should take all necessary steps to attempt to resolve the dispute between themselves. The union or management may file an exception to an arbitrator's award with the Federal Labor Relations Authority. The union or management has 30 days beginning on the date of an award to file exceptions with the Authority. If no exceptions are filed within that time frame, then the award becomes final and binding. The refusal of either party to adhere to the award is an unfair labor practice.