When a union and an employer cannot reach agreement during collective bargaining negotiations some contracts or laws require that they use binding interest arbitration. For instance, in Michigan we have Act 312. This act provides for binding interest arbitration for police and fire employees. The parties select an arbitrator and each side selects a delegate. This panel hears the arguments of each side and then writes a binding award that is the new collective bargaining agreement for the parties. Michigan also has fact finding for non-police and fire employees but the decision is a recommendation and is not binding.
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