What is the role of arbitration in labor relations?

Arbitration plays a crucial role in labor relations by serving as a mechanism for resolving disputes that arise between unions and management. When conflicts occur, such as disagreements over contract interpretations or violations, arbitration provides a formalized process where an impartial third party evaluates the evidence and arguments presented by both sides.

The arbitrator's decision is binding, meaning both parties must adhere to what the arbitrator decides, thus ensuring that disputes are resolved in a definitive manner. This is essential for maintaining labor peace and ensuring compliance with negotiated agreements, as it reduces uncertainty and potential for ongoing conflict. By making binding decisions, arbitration helps to uphold the stability and integrity of labor relations, allowing both employees and employers to have faith in the resolution process.

The other options, while they describe various functions that may occur in labor relations contexts, do not accurately capture the specific and critical role of arbitration in providing a binding resolution to disputes.