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Collective Bargaining & Arbirtration Explained

Negotiating for a Fair Salary, Benefits

By Edward Silverstein, About.com

Resolving labor issues can be easier than one thinks. It doesn't necessarily mean prolonged court battles, though these can occur. Instead, there are procedures in place that encourage a resolution of the issues. Two popular procedures are collective bargaining and arbitration.

Collective bargaining consists of negotiations between an employer and a group of employees to determine the conditions of employment. Employees are often represented in bargaining by a union or other labor organization. Collective bargaining is governed by federal and state statutory laws, administrative agency regulations, and judicial decisions. The main law governing collective bargaining is the National Labor Relations Act (NLRA).

Collective bargaining is an alternative to strikes. In fact, the NLRA was designed to curtail work stoppages, strikes and general labor strife. The NLRA extends many rights to workers who wish to form, join or support unions, or workers who are already represented by unions.

Arbitration is an alternative method to resolve disputes. The parties select a neutral third party (an arbiter) to hold a hearing on the disagreement. The arbiter issues a binding decision on the parties. Federal and state laws govern arbitration.

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