Advantages of arbitration

Arbitration offers overwhelming advantages over litigation in resolution of labor disputes. The three most significant advantages are as follows:[1]

1. arbitrators are considered to have specialized expertise than judges in the matter they are hearing;[2]
2. parties in question could better maintain their employment relationship in the arbitration proceedings than in the litigation as they are entitled to the selection of the arbitrator or arbitrators who will hear their case; and
3. arbitration in most cases save the disputing parties both time and money.

Other advantages include “prompt compliance”[3] of the arbitral award, enforceability[4] in many countries, flexibility in both schedule and rules for the hearing(s)[5] and privacy[6]. Furthermore, arbitration provides “a crucial setting for more effective and fruitful mediation”[7] partly because arbitrators are experts in labor relations issues.

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[1] John T. Dunlop & Arnold M. Zack, Mediation And Arbitration of Employment Disputes 24-31 (Jossey-Bass Publishers) (1997); Enid A. Mashall, Gill: The Law of Arbitration 3 (Sweet & Maxwell 4th ed. 2001) (1965); ABA Selection of Labor and Employment Law, How Arbitration Works 11-14 (Alan Miles Ruben ed. et al) (American Bar Association 2003) (1952).

[2] This is particularly the case in countries with no labor court. See ABA Selection of Labor and Employment Law, at 12 (2003) (arguing that, as courts of general jurisdiction are “not versed in labor relations problems”, labor courts have been established to deal better with those issues.)

[3] ABA Selection of Labor and Employment Law, at 14 (2003) (reasoning that parties arbitrate voluntarily and therefore it is likely, “prompt compliance with the award is obtained”). See also John T. Dunlop & Arnold M. Zack, at 25-29 (1997) (giving other reasons from which prompt compliance with the arbitral award could be achieved).

[4] Enid A. Mashall, at 3 (2003).

[5] Mashall, supra note 3, at 4 (2003) (admitting that some disputants prefer judicial formalities).

[6] Id., at 3 (2003).

[7] Dunlop, supra note 4, at 30.

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