Arbitration – A method of dispute resolution provided by a collective  bargaining agreement or  other contract, typically with a final and binding  decision rendered by a neutral decisionmaker known as  an  arbitrator.  The predominant form of arbitration in labor matters is grievance arbitration, also known as rights arbitration. Another  type is interest arbitration, which is used to resolve an impasse or deadlock during bargaining in the formation of a contract or one of its provisions. Arbitration that is not final and binding is known as advisory arbitration.

An arbitration decision includes an award setting forth the specific order of the arbitrator.When upheld in court, an award is confirmed. Under narrow circumstances, an award may be vacated or overturned, often with a court deciding to remand the case to the arbitrator for further activity. The arbitrator may be selected on an ad hoc or case-by-case basis. Or the arbitrator may be selected from a permanent panel of arbitrators agreed  to by the parties to a labor  agreement. Selections also can be made by parties striking names from a list  transmitted by an administrative  agency or  provider organization such as the Federal Mediation and Conciliation Service or the American Arbitration Association.

Arbitration that  is mutually adopted by the  parties during collective bargaining is different than mandatory arbitration agreements demanded  by some employers for employees in non-union workplaces as an alternative to civil litigation.