The TR Company

Pendulum Arbitration

30/9/19 Pendulum Arbitration

Refers to a determination in industrial disputes where an arbitrator has to resolve a claim between a trade union and management by making a determination of which of the two sides has the more reasonable position. The arbitrator must choose only between the two options, and cannot split the difference or select an alternative position. It was initiated in Chile in 1979 and has proved to be a very effective mechanism. This form of arbitration is also known as Baseball Arbitration. Night Baseball Arbitration is a variation of baseball arbitration where the figures are not revealed to the arbitration tribunal. The arbitrator will determine the quantum of the claim in the usual way, and the parties agree to accept and be bound by the figure which is closest to the tribunal’s award.