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Chap11 - BUS353-01 CHAPTER 11 Labor and Employment...

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BUS353-01 CHAPTER 11 Labor and Employment Arbitration I. Basics A. Arbitration 1. third party neutral 2. makes final and binding decisions B. Types of Arbitration 1. rights – decisions regarding grievances alleging violations of labor contract 2. interest – decisions regarding trms of a new labor contract II. Development of Labor Arbitration A. Before World War II 1. Arbitration used infrequently 2. arbitrators had little authority 3. unions and management relied on economic tests of strength to resolve employee grievances. 4. had to rely on persuasive and diplomatic capabilities of arbitrator in forming a consensus opinion both parties could accept B. During World War II 1. National War Labor Board a. encouraged parties to carefully define arbitrator jurisdiction in labor agreements b. served as training ground for future arbitrators C. Legal Foundations of Arbitration 1. Lincoln Mills decision (1957) a. federal courts should enforce agreements to arbitrate in the interest of industrial peace b. Union can sue Employer for failure to arbitrate a covered labor dispute and seek injunction requiring arbitration 2. Steelworkers' Trilogy (1960) a. arbitrator must determine whether a grievance issue is subject to arbitration b. court recognized importance of “common law” of the shop - arbitrator understands common law of shop - labor practices not part of labor contract c. arbitrator is better qualified than the courts to interpret (determine merit) and resolve industrial grievances (knowledge of the common law of the shop)
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3. Boys Market (1970) a. employer can sue Union that refuses to go to arbitration when there is an arbitration clause in contract b. employer can get injunction against Union D. Arbitration Obligation after Labor Contract Expiration
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