In 1925 Congress passed the Arbitration Act establishing the right of parties to a contract to specify the processes to be used to resolve disputes over the interpretation or implementation of the contract (Fosum, J. A.) 2012.
The following are forms of arbitration:
• Grievance arbitration- is a quasi-judicial process where a neutral third party hears a dispute over contract interpretation, discipline or discharge and renders a final and binding decision (B. Fortado). Labor organizations in the United States, such as the National Labor Union, called for arbitration as early as 1866 as an alternative to strikes so as to resolve disputes over the wages, benefits and other rights that workers would enjoy.
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Governments have also relied on arbitration to resolve particularly large labor disputes, such as the Coal Strike of 1902. This arbitration utilized a neutral arbitrator to decide the terms of the collective bargaining