Pros And Cons Of Interest Arbitration

Decent Essays
There are numerous pros and cons to interest arbitration. Some pros would be motivation for negotiators from both sides to reach their own agreement. Because going to arbitration, neither party has input, it poses as a threat to both parties. The treat of arbitration encourages negotiation rather than arbitrated settlements. A con may be that either sides grows stagnate and negotiators might become addicted or over-dependent on arbitration. This can be problematic because it can be used as a crutch and will allow the blame to be placed on the arbitrator rather than the specific party. The usage of interest arbitration in the private sector is low because it is voluntary in the private sector, whereas in the public sector, it is often mandatory.

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