Certified Human Resource Professional (CHRP) Practice Exam

What is an outcome of effective rights arbitration?

1. The bargaining positions of each side are brought closer together.

2. A grievance settlement is reached.

3. The likelihood of a strike is reduced.

4. A binding collective agreement is reached.

The correct answer is: A binding collective agreement is reached.

In the context of effective rights arbitration, the primary outcome is the establishment of a binding collective agreement. This process occurs when an impartial arbitrator reviews the evidence and arguments presented by both parties regarding a dispute. The arbitrator's decision is final and legally enforceable, ensuring that the terms agreed upon in the collective agreement are upheld. This binding aspect is crucial because it provides both parties with a resolution that they must adhere to, preventing further disputes over the same issue. It reinforces the concept of contract law in labor relations, establishing clear expectations and obligations for both employers and employees. The enforcement of a collective agreement through arbitration helps to stabilize the labor-management relationship, promoting long-term compliance and minimizing potential conflicts. While the other options may reflect possible effects or benefits of rights arbitration, the definitive outcome that characterizes this process is the creation of a binding agreement that governs the rights and responsibilities of the parties involved. This aspect distinguishes effective rights arbitration from other dispute resolution methods, emphasizing its role in maintaining industrial peace and legal compliance.