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Cornell Institute for Hospitality Labor and Employment Relations (CIHLER) Releases Report Supporting Arbitration in Hospitality Labor Disputes

Friday, June, 6, 2014


Addressing concerns on the part of labor groups that arbitration is a process more beneficial to employers than employees when it comes to labor disputes in the hospitality industry, the Center for Hospitality Research (CHR) partnered with the Cornell Institute for Hospitality Labor and Employment Relations (CIHLER) to produce a report studying the effect of arbitration in such disputes.

 

The report finds that fears that arbitration unduly favors employers (because it is almost always employers who hire and pay for arbitration proceedings) are unfounded.  The report states unequivocally that there is no data to support the claim that arbitration is unfair to either side of a dispute, and that this combined with its relatively low expense and efficient, fast process makes it the most desirable dispute resolution avenue to both employers and employees.

 

The report comes at a time when many businesses inside and outside the hospitality industry are implementing arbitration clauses in labor agreements in order to avoid costly litigation.  This trend has alarmed labor unions and workers, who fear it’s a way of contractually negating their right to seek relief. 

 

The Cornell Institute for Hospitality Labor and Employment Relations (CIHLER) was established in 2013 to be an independent platform for all aspects of the hospitality industry.  The arbitration report is available on their website at https://www.hotelschool.cornell.edu.