What is it called when a third party intervenes to settle disputes arising from differing interpretations of a collective bargaining agreement?

The process described, where a third party intervenes to resolve disputes arising from differing interpretations of a collective bargaining agreement, is known as grievance arbitration. In grievance arbitration, an arbitrator hears the arguments from both the employer and the union or employee and then makes a binding decision regarding the interpretation of the agreement. This method is often used to ensure that both parties adhere to the terms they agreed upon during the initial collective bargaining, helping to maintain a harmonious working relationship and preventing disputes from escalating further.

The context behind this process highlights its role in labor relations, providing a mechanism for conflict resolution without resorting to more drastic measures such as strikes or prolonged negotiations. Grievance arbitration can lead to efficient resolutions, which are crucial for maintaining workplace stability.

Other options, while related to labor relations, do not precisely characterize the concept of a third-party intervention. Collective bargaining refers to the negotiation process itself, labor negotiations indicate the back-and-forth discussion that occurs to reach an agreement, and a labor strike is a work stoppage initiated by employees to express grievances or push for demands. None of these involve the intervention of a third party for dispute resolution in the specified context of understanding a collective bargaining agreement.