top Business

When two groups have disagreements and want to resolve it without going to court, they use the process of arbitration. They might now want to spend on any unnecessary expenses and just want to resolve their disputes as quickly as possible compared to the judicial process. Labor disputes are the most common example of these that needs to have an immediate resolution.

Arbitration is an alternative way of resolving disputes. They are resolved by a third party called an arbitrator which is someone who performs similar function to a judge and hands down a binding decision after hearing the evidences from both parties. Here are some basic information if you want to be a labor arbitrtor Pennsylvania and the nearby city of New Jersey, NY.

The number of arbitrators involved could vary depending on their need but most commonly one or three. If there are more than one arbitrators, then they are called as tribunal and it is preferred for their numbers to be an odd one so that having a tie could be prevented. Both parties appoint them either mutually or by each of them giving an equal number of appointees. An external party nominated by the ones disputing could appoint members of tribunal as well.

Labor arbitration has two categories called rights and interests. Rights, also known as grievance arbitration, involves disagreements about the interpretation and application of collective agreement. While the interest arbitration is when parties that are disputing are not allowed legally to lock out or have strikes.

Arbitration has a few advantages against court procedures. The groups disputing are allowed to select the arbitrator and could choose someone who has the technical specialties related to the field of the business to be able to understand the presented evidences better. They could also have the hearing earlier and finish it faster when compared to court proceedings. Less work is needed for preparation too.

There is also the advantage of it being private and just between the two groups. The media and other people are not involved and cannot attend the hearings. Decisions are also not published and cannot be accessed directly. The hearing can also be scheduled at a place and time suitable to all involved including the witnesses and the arbitrators.

The disadvantages of this includes the service cost for the arbitrators which will be payed by both or either sides. Their fees are quite large and can even reach up to ten percent of the claim. Although others say that this is still not as expensive as court procedures including the other potential costs in it.

The decision made by the arbitrators are final and cannot be appealed unless there is evidence if corruption. Mistakes in decision making sometimes do happen and it usually could not be remedied. There might be decisions that may not seem to serve any justice due to challenges of giving each party equality.

Select arbitrators who have specialties in the industry the groups are involved in. Letting someone with almost no idea of that particular industry decide will most likely not be able to give a just judgment. Leadership and experience in your profession are one of the requirements of being an arbitrator.