Unfair Arbitration Agreements

One of the advantages of the traditional labour arbitration system in unionized enterprises is that the company and the union are repetitive players in the system. This means that they are both likely involved in future cases, have experience in previous cases and are invested in developing a fair and effective dispute resolution system. This balanced bilateral system, with repetitive players on both sides, means that a referee who was not a true neutral and who instead began to prefer one game, would soon become unacceptable to the other party and would not be chosen for future cases. This balance between two powerful replays is a key feature that allows private arbitration systems to function effectively. 10. There is another controversial issue that arises when the parties are excluded from the class action as a result of an enforceable class action and attempt to arbitrate their rights throughout the class. The courts agree that the parties are free to specify whether their compromise clause authorizes class arbitration proceedings, and if they do, their intent will be controlled. However, in most cases, an arbitration clause does not say anything about the availability of class-level arbitration procedures. The courts do not agree on what the standard rule should be when a contract on the availability of class arbitration procedures is silent. See generally Stolt-Nielsen S.A.

v. AnimalFeeds International Corp., 559 U.S. 662 (2010). The courts also disagree on the issue of predictiveness as to whether a court or arbitrator should decide whether or not the parties` agreement has authorized class arbitration proceedings. There is evidence that the situation has not changed much since 2011. A 2015 study by Theodore Eisenberg on workplace discrimination disputes by the Federal Court of Justice found: At the same time, another study in 2015 showed that the participation rate in work procedures has decreased by only 19.1% on average in recent years. 49 investigations did not show whether a similar decline in employee earnings in government courts had also been recorded. Whatever the reason for the decline in employee success rates in employment cases, these results indicate that while the gap between the federal court and arbitration gains has narrowed, the rate of employee profit in arbitration is still 35.7 per cent lower than the rate of employee benefit in federal court.