Permanent Arbitrator Law and Legal Definition

An arbitrator is a neutral third party to whom disputing parties submit their differences for decision (award). An ad hoc arbitrator is one selected to act in a specific case or a limited group of cases. A permanent arbitrator is one selected to serve for the life of the contract or a stipulated term, hearing all disputes that arise during this period. A permanent arbitrator is usually selected by mutual agreement. The position is sometimes referred to as an "impartial umpire". The term indicates his function of presiding over the union contract to enforce observance of it by both parties.

The following is an example of a contract clause dealing with permanent arbitrators:

"The method for submitting a matter to arbitration shall be as follows: The party to this Agreement desiring that the matter be arbitrated shall serve a written demand for arbitration upon the other party either by certified mail addressed to the other party or by hand-delivery to a person authorized by the other party to receive a demand for arbitration. The party serving the demand for arbitration shall simultaneously mail a copy thereof to the Regional Office of the American Arbitration Association. The arbitrator shall be chosen in accordance with the then current Voluntary Labor Arbitration Rules of the American Arbitration Association governing the voluntary settlement of labor disputes.

(c) In lieu of the above procedure to select an arbitrator, the parties during the term of this Agreement, may agree to mutually select a permanent arbitrator. In the event either party withdraws its approval of the agreed upon permanent arbitrator, they may mutually select and agree upon another permanent arbitrator. If the parties are unable to agree to a permanent arbitrator, then the procedure to select an impartial arbitrator set forth in the above paragraph shall be followed."