What does "arbitration" refer to in the context of labor disputes?

Arbitration in the context of labor disputes refers to a method where a neutral third party, the arbitrator, is appointed to resolve the disagreement between parties, typically between employers and employees or unions. This process is particularly common in situations where negotiations have failed, providing a final resolution that both parties have agreed to accept.

In arbitration, the arbitrator listens to both sides, reviews relevant evidence, and makes a binding decision aimed at resolving the dispute. This is often preferred because it can be faster and less formal than going through the courts, and it helps avoid the unpredictability associated with litigation. Arbitration agreements are typically outlined in collective bargaining agreements and can be a crucial aspect of labor relations, as they help maintain workplace harmony and provide clear processes for conflict resolution.

The other options illustrate processes that are different from arbitration. Negotiation between employees and employers does not necessarily involve a third party and is more collaborative. A legal court proceeding entails a more structured judicial environment, while a mediation process involves a mediator who facilitates discussions without making binding decisions, which is distinct from arbitration where the arbitrator does render a decision.