Human Resources Certification Institute (HRCI) Practice Exam

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Study for the HRCI Exam. Enhance HR knowledge with multiple choice questions and explanations. Prepare effectively for your certification!

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Which of the following is occurring when a third party settles disputes that occur as the result of differences in the interpretation of a collective bargaining agreement?

  1. Collective bargaining

  2. Labor negotiations

  3. Labor strike

  4. Grievance arbitration

The correct answer is: Grievance arbitration

The process described in the question pertains to grievance arbitration, which involves a neutral third party resolving disputes arising from differing interpretations of a collective bargaining agreement. This arbitration is typically the final step in the grievance process and is designed to ensure that both parties abide by the terms of the contract. In grievance arbitration, the arbitrator listens to both sides present their arguments and evidence before making a binding decision. This mechanism is crucial in maintaining labor relations by providing a structured way to resolve disputes without resorting to strikes or other forms of work stoppages. The other choices represent different aspects of labor relations but do not specifically address the role of a third party in resolving disputes. Collective bargaining refers to the negotiation process that establishes the employment contract, while labor negotiations are broader discussions between employers and unions. A labor strike involves workers refusing to work to press their demands, which is a different scenario from dispute resolution.