FAQ: Labour Relations (continued)

Arbitration

What does the term arbitration mean?
What is an arbitrator?
What is the difference between rights and interest arbitration?
How binding is the decision of an arbitrator or arbitration board?
What does "grievance" mean as the term is used in labour relations?
What if an employee or a trade union feels the employer is not following the terms of the collective agreement, or if there is a disagreement about the meaning of part of the collective agreement?
What if the union and the employer cannot settle a grievance?
What if either the union or the employer refuses to appoint a representative to an arbitration board, or if agreement cannot be reached on the selection of a chair?
What is the difference between sections 48 and 49 of the Labour Relations Act, 1995?

What does the term arbitration mean?

Arbitration is a quasi-judicial process in which a disinterested third-party (an arbitrator or arbitration board) hears evidence presented by both the union and the employer on issues in dispute, and hands down a binding decision.

What is an arbitrator?

An arbitrator performs a function similar to a judge or court by making a binding decision resolving the matters in dispute between the parties.

What is the difference between rights and interest arbitration?

Rights: Grievance arbitration, also known as rights arbitration, is a mechanism to resolve disputes about the interpretation and application of a collective agreement during the term of that collective agreement.

Interest: A mechanism to renew or establish a new collective agreement for parties without the right to strike/lock-out, i.e. hospital/nursing home workers.

How binding is the decision of an arbitrator or arbitration board?

It is final and binding. If it is not obeyed, the decision can be filed with the Ontario Court (General Division) and enforced as a decision of that court. Failure to abide by an arbitration decision can be contempt of court. (See Section 48 (18), (19) of the Labour Relations Act, 1995).

What does "grievance" mean as the term is used in labour relations?

A grievance is a written complaint alleging a contravention of the collective agreement.

What if an employee or a trade union feels the employer is not following the terms of the collective agreement, or if there is a disagreement about the meaning of part of the collective agreement?

In such a situation, the employee or the union may file a grievance. The grievance procedure is set out in the collective agreement itself. Normally, it involves three or four steps. At each step more senior people from both the union and the employer try to settle the grievance. The collective agreement will often provide for a time limit within which the grievance must be commenced (usually a certain number of days after the event giving rise to the grievance). If the grievance is not filed within this period, it may be dismissed. An arbitrator has the power to extend the time limit, but only if the other side's position will not be prejudiced, and if the collective agreement does not forbid such an extension (See Section 48 (16) of the Labour Relations Act, 1995).

What if the union and the employer cannot settle a grievance?

The grievance must then be referred to an arbitrator or board of arbitration. The method for doing this should also be set out in the collective agreement. An arbitrator performs a function similar to a judge or court by making a binding decision resolving the matters in dispute between the parties. Occasionally, collective agreements provide that the grievances be heard and decided by one person acting as a sole arbitrator. More common, however, is the appointment of a three-person arbitration board. The union and the employer each select a member, and those two members, in turn, agree on a chair (See Section 48 of the Labour Relations Act, 1995).

What if either the union or the employer refuses to appoint a representative to an arbitration board, or if agreement cannot be reached on the selection of a chair?

If the collective agreement itself does not provide for such a situation, then the Minister of Labour can be asked to make whatever appointments are necessary.

What is the difference between sections 48 and 49 of the Labour Relations Act, 1995?

Section 48. If there is a failure to appoint an arbitrator or to constitute a board of arbitration under a collective agreement, the Minister, upon the request of either party, may appoint the arbitrator or make the appointments that are necessary to constitute the board of arbitration.
Section 49 refers to an expedited arbitration process which may be used in certain circumstances. The appointed arbitrator will commence to hear the matter within 21 days after receipt of the request by the Minister (See Section 49 (7) of the Labour Relations Act, 1995).

How do I apply to be included on the Minister's list of arbitrators?

Application forms and details of criteria for inclusion on the list of arbitrators appointed by the Minister will be mailed to interested parties upon request. This should be returned to the address specified on the form, together with the administration fee of $50.00.