JUDICIAL REVIEW OF ARBITRATION DECISIONS

Grievance arbitration is one of the fundamental cornerstones of the North American industrial relations system. Through a hearing process less formal than a court proceeding, an arbitrator interprets an existing collective agreement and applies its provisions to a particular set of facts to resolve differences between the union and the employer. Enshrined in Canadian labour law as a requirement in all collective agreements (and included almost universally by practice in the United States), a grievance arbitration decision is intended to be final and binding, providing the parties with a timely interpretation of their contract. The same labour relations statutes that establish arbitration as “final and binding”, may expressly permit either the union or the employer to challenge the arbitration outcome by applying for court review. The court may uphold the arbitration decision, amend or overturn it, or refer it back to the arbitrator. Clearly, therefore, grievance arbitration is not final and binding if the arbitrator’s decision is subject to another level of review. Judicial review can add months and significant costs to the entire grievance resolution process. Court decisions can also have a significant impac