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Unions and management have adopted arbitration on a wide scale in recent years. It is used, as an alternative to strikes and lockouts, to resolve disputes over the terms of contracts as well as over grievances. The purpose here is to analyze and evaluate this process. An understanding of arbitration, its function and limitations, is essential if it is to be effective. This paper, therefore, seeks to (1) define the terms commonly employed; (2) appraise conflicting concepts of the functions of the process; (3) consider mediation in arbitration; (4) evaluate the significance of precedents; (5) describe the part played by government; (6) establish the conditions for successful arbitration; and (7) set forth its limitations.
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