The Conventional Wisdom of Discharge Arbitration Outcomes and Remedies: Fact or Fiction

This study examines some of the arbitration community’s commonly accepted beliefs about arbitration outcomes and remedies in employee discharge cases, with the findings revealing that some beliefs are likely fact, while others, perhaps, are fiction. With data from 1432 Minnesota discharge awards and 74 arbitrators who decided them, eight truisms are examined pertaining to the following: the frequency that arbitrators use Daugherty’s Seven Tests rubric to analyze case evidence and whether its use affects award outcomes; the distribution of varying quanta of required proof by arbitrators and how different quanta affects award outcomes; and the effect of employee job tenure and “last chance agreement” status on award outcomes. Using a subsample of “reinstatement with back pay” awards, we additionally examine the prevalence of arbitrators ordering how back pay should be computed and “retaining jurisdiction” over back pay cases.