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Arbitration refers to the process whereby parties involved in collective bargaining disputes agree to be legally bound by the decision of neutral, third-party intermediaries called arbitrators. Usually, arbitrators are chosen by state labor relations boards. In public education labor disputes, arbitrators are typically selected by mutual agreement of local school boards and employee bargaining units. The arbitration process needs to be distinguished from mediation, conciliation, fact-finding, and other forms of conflict resolution in collective bargaining disputes, because, unlike arbitrations, these other measures of conflict resolution are not legally binding on the parties involved in the disagreements.

The arbitration process is preferred in labor disputes in both the private and public sectors, because it is seen as a relatively fast and inexpensive method of resolving legal ...

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