Section 110.10  Scope and Authority

 

This Part is issued by the Illinois Department of Labor under the Labor Arbitration Services Act [710 ILCS 10] (the Act).  The Part applies to all arbitrators listed on the Department's Illinois Arbitration Service (IAS) Roster of Arbitrators, to all applicants for listing on the Roster, and to all persons or parties seeking to obtain from IAS either names or panels of names of Arbitrators listed on the Roster in connection with disputes which are to be submitted to arbitration or fact-finding.

 

(Source:  Amended at 25 Ill. Reg. 7211, effective May 21, 2001)

 

Section 110.20  Policy

 

a)         The labor policy of the State of Illinois is designed to promote the settlement of issues between employers and represented employees through the processes of collective bargaining and voluntary arbitration.  This policy encourages the use of voluntary arbitration to resolve disputes over the interpretation or application of collective bargaining agreements. Voluntary arbitration and fact-finding in disputes and disagreements over establishment or modification of contract terms are important features of constructive labor-management relations, as alternatives to economic strife in the settlement of disputes.

 

b)         Additionally, it is the policy of the State to promote expeditious resolution of private employment contract disputes between an employer and employee, to provide to the judicial branch of government means of alternative resolution of suits regarding the interpretation or application of collective bargaining agreements or private employment contracts, and in general to offer these voluntary mechanisms of dispute resolution as needed by both the private and public sector of the economy.

 

Section 110.30  Administrative Responsibilities

 

a)         Director:  The Director of the Illinois Department of Labor has ultimate responsibility for all aspects of IAS arbitration and fact-finding activities (hereafter referred to as "arbitration") and is the final administrative authority on all questions concerning the Roster or IAS arbitration procedures.

 

b)         Illinois Arbitration Service:  The Illinois Arbitration Service maintains, subject to the Director's authority and instruction, a Roster of Arbitrators (the "Roster"); administers Sections 110.70 through 110.150 of this Part; assists, promotes, and cooperates in the establishment of programs for training and developing new arbitrators and fact-finders (hereafter termed "arbitrators"); collects information and statistics concerning the arbitration function, and performs other tasks in conjunction with the function that may be assigned by the Director.

 

c)         Arbitrator Review Board:

 

1)         The Arbitrator Review Board (the "Board") shall consist of a presiding officer and such members and alternate members as the Director may appoint, and who shall serve at the Director's pleasure and may be removed at any time.  The Board shall be composed entirely of full-time officers or employees of the Illinois Department of Labor.  The Board shall establish its own procedures for carrying out its duties.

 

2)         Duties of the Board.  The Board shall:

 

A)        Review the qualifications of all applicants for listing on the Roster, interpreting and applying the criteria set forth in Section 110.50;

 

B)        Review the status of all persons whose continued eligibility for listing on the Roster has been questioned under Section 110.50;

 

C)        Make recommendations to the Director regarding acceptance or rejection of applicants for listing on the Roster, or regarding withdrawal of listing on the Roster for any of the reasons set forth herein.

 

Section 110.40  Roster of Arbitrators; Admission and Retention

 

a)         The Roster:  The IAS shall maintain a Roster of labor arbitrators consisting of persons who meet the criteria for listing contained in Section 110.50(a) and (b) and whose names have not been removed from the Roster in accordance with Section 110.50(b)(4).

 

b)         Adherence to Standards and Requirements:  Persons listed on the Roster shall comply with this Part and with any written instructions or forms provided to them in accordance with Sections 110.70 through 110.150. Arbitrators are also expected to conform to the ethical standards and procedures set forth in the Code of Professional Responsibility for Arbitrators of Labor Management Disputes, as approved by the Joint Steering Committee of the National Academy of Arbitrators (May 30, 1996, no subsequent dates or editions).  Copies are available at the Department of Labor's Springfield office.  Copies may also be obtained at

 

c)         Status of Arbitrators:  Persons who are listed on the Roster and are selected or appointed to hear arbitration matters or to serve as fact-finders do not become employees of the State of Illinois or the parties by virtue of their selection or appointment.  Following selection or appointment, the arbitrator's relationship is solely with the parties to the dispute, except that arbitrators are subject to certain reporting requirements and to standards of conduct as set forth in this Section.

 

d)         Role of IAS.  IAS  has no power to:

 

1)         Compel parties to arbitrate or agree to arbitration;

 

2)         Enforce an agreement to arbitrate;

 

3)         Compel parties to agree to a particular arbitrator, except where the collective bargaining agreement indicates that IAS is to select and assign the particular panel rather than submit a roster and in the judgment of IAS the particular arbitrator assigned does not appear to be in a conflict of interest under either Section 110.50 or Section 110.60 of this Part.

 

e)         Nominations and Panels:  On request of the parties to an agreement to arbitrate or engage in fact-finding, or where arbitration or fact-finding may be provided for by statute, or as a court may request, IAS will provide a name or a panel of names drawn from the Roster.  Where an agreement specifies only that the Service is to provide arbitration or an arbitrator, the Service shall designate one named arbitrator.  The provision of a named arbitrator or a panel of arbitrators shall be without charge if pursuant to a request of court or if pursuant to a collective bargaining agreement or private employment agreement executed prior to July 1, 1987.  In all other instances an application fee shall be charged as determined by the Director during the period during which the request is made to the Service pursuant to Section 110.130(a).  Procedures for obtaining these services are in Section 110.70.  Neither the submission of a nomination or panel nor the appointment of an arbitrator constitutes a determination by IAS that an agreement to arbitrate or enter fact-finding proceedings exists; nor does such action constitute a ruling that the matter in controversy is arbitrable under any agreement.

 

f)         Rights of Person Listed on the Roster:  No person, including any employee of the Illinois Department of Labor, shall have any right to be listed or to remain listed on the Roster.  The Department of Labor retains authority, ultimately subject to the Director's authority, to assure that the needs of the parties using its facilities are served.  To accomplish this purpose it may establish procedures for the preparation of panels or the appointment of arbitrators or fact-finders which include consideration of such factors as background, experience, availability, acceptability to possible parties, geographical location and the expressed preferences of the parties.  (Reference Section 110.90, Nominations and Designations of Arbitrators)

 

(Source:  Amended at 25 Ill. Reg. 7211, effective May 21, 2001)

 

Section 110.50  Listing on the Roster; Criteria for Listing and Retention

 

a)         Persons presently utilized by the Service as arbitrators who are employees of the Illinois Department of Labor may continue to perform such work and be placed on the Roster as their supervisors permit and as their workload dictates, subject to removal as set out in this part.  Persons who are or later become employees of the Department of Labor may be considered for placement on the Roster subject to these provisions and the consent of their supervisors and their work requirements.

 

b)         Both future Department employees and private ad hoc persons who seek to be listed on the Roster must complete and submit an application form which may be obtained from the Illinois Arbitration Service.  Upon receipt of an executed form, IAS will review the application, assure that it is complete, make inquiries as to references, institutions of training and written decisions, and submit the application to the Arbitrator Review Board.  The Board will review the completed applications under the criteria set forth in subsection (1), (2) and (3) of this section, and forward to the Director its recommendation on each applicant.  The Director makes all final decisions as to whether an applicant may be listed as set out in this application and the inquiries made.  Each applicant shall be notified in writing of the Director's decision and the reasons therefore.  The IAS may, with the approval of the Director, determine periods of time during which applications may be made, such application-periods to be initiated when the Roster-complement appears to be in danger of generating delays in hearings, whether as to the total case load or that within some industry or particular geographic area.  In instances where additions to the Roster are sought due to case loads within a geographic area or industry, applications may be limited to services within that area or industry.

 

1)         General Criteria:  Applicants for the Roster will be listed on the Roster subject to the above general provision upon a determination that they:

 

A)        Are experienced, competent and acceptable in decision-making roles in the resolution of labor relations disputes; or

 

B)        Have extensive experience in relevant positions in collective bargaining and have had adequate training to facilitate acting in a decision-making role in the resolution or labor relations disputes; and

 

C)        Are capable of conducting an orderly hearing, can analyze testimony and exhibits and can prepare clear and concise findings and awards within reasonable time limits; and

 

D)        Possess the factors of background and experience, availability, acceptability, geographical location and the expressed preferences of the parties, or a combination thereof, which demonstrate that inclusion on the Roster will lead to a useful role in resolving disputes.

 

2)         Proof of Qualification:  The qualifications listed in subsection (1) above of this section are preferably demonstrated by the submission of actual arbitration awards prepared by the applicant while serving as an impartial arbitrator chosen by the parties to disputes.  Equivalent experience acquired in training, internship or other development programs, or experience such as that acquired as a hearing officer or judge in labor relations controversies shall also be considered by the Board.  A suitable background as an advocate in the presentation and preparation of cases in dispute as documented in briefs, combined with a reputation of fairness as an advocate and a recommendation(s) from a neutral(s) who has heard the applicant before him in a labor-management dispute and who believes the advocate could conduct fair and impartial hearings and resolutions, combined with training, internship or other development programs, shall also be considered by the Board.

 

3)         Conflict of Interest; Advocacy:  An arbitrator may not act as an arbitrator as to disputes in which an employee organization or employer is involved for which he performs services or through which directly or indirectly he receives income.  Thus, for example, a person on the Roster may not act as Arbitrator in a dispute which involves a labor organization or employer for which he performs services or which refers to him individuals for whom he performs services.  Similarly, a person on the Roster cannot act as an arbitrator in any dispute as to which a person with whom he is directly associated (such as a partner or employee of a law firm) would be prohibited as acting as an arbitrator were he on the Roster.  A person receiving a pension from a labor organization or its affiliate or from an employer or its affiliates or subsidiaries is similarly prohibited from acting as an arbitrator in a dispute involving that labor organization or employer.  It is expected that any individual who has relationships which might, in some future dispute, result in a prohibition as described in this subsection will disclose such relationships to the IAS and Board and that his biographical data furnished to parties will bear such information.  No person who was or is listed on the Roster at any time who fails to divulge advocacy or conflicts of interest of this nature at that time or as they thereafter arise may continue to be listed.  The Service may restrict the panels on which a person may appear to avoid the appearance of conflicts of interest.

 

4)         Duration of Listing, Retention:  Initial listing may be for a period not to exceed three years, and may be renewed thereafter for periods not to exceed two years, provided upon review that the listing is not cancelled by the Director as set forth below.  Department of Labor employees may be removed at any time upon request of their supervisor due to work requirements.  Notice of cancellation may be given to the member whenever the member:

 

A)        No longer meets the criteria for admission as set out in subsections (1)-(3) of this Section as determined by his performance and awards made pursuant to this Part;

 

B)        Has been repeatedly and flagrantly delinquent in submitting awards as specified in Section 110.120;

 

C)        Has refused to make reasonable and periodic reports to IAS, as required in Sections 110.70 through 110.150, concerning activities pertaining to arbitration;

 

D)        Has been the subject of complaints by parties who use IAS facilities, and the Director, after consulting with the member's supervisor, concludes that just cause for cancellation has been shown;

 

E)        Is determined by the Director to be unacceptable to a substantial number of parties who use IAS arbitration facilities.  The Director shall base a determination of unacceptability on the IAS records showing the number of times the arbitrator's name has been proposed to the parties and the number of times it has been selected.

 

5)         The determination of whether to give notice will be based upon the severity of the violation(s); the number of violations; the damage to the credibility and efficiency of the IAS and the arbitration process as exemplified by the inability of the IAS to maintain timely records and fewer parties using the service; the pecuniary harm to the parties.

 

6)         No listing may be cancelled without at least sixty (60) days notice of the reasons for the proposed removal.  An arbitrator's listing will be suspended without notice pending a final decision if the credibility of the IAS and the arbitration process would be damaged or if a party would suffer pecuniary harm.  The member shall have an opportunity to submit a written response showing why the listing should not be cancelled and/or to request the appointment of a hearing officer.  The Director shall appoint a hearing officer upon a member's request or if the director is unable to conduct his own own inquiry.  The hearing officer shall conduct an inquiry into the facts of any proposed cancellation by consulting with the member, the member's supervisor and reviewing awards and related materials prepared by the member.  The hearing officer shall make a recommendation to the Director who will make a final decision based upon the findings of the hearing officer.

 

7)         Suspension:  During the time a member is listed on the Roster it may occur that certain automatic reasons for suspension come about.  Such suspensions shall last only for the length of the reason for the suspension, and the duration of the members' listing shall be extended thereafter so as ensure that the working duration of the listing remains unchanged.  An automatic suspension occurs when a member who is an employee of the Department is removed from the Roster due to his supervisor's request based on work requirements.  An automatic suspension occurs on request of a member due to health or occupational reasons or temporary unavailability.  An automatic suspension also occurs when a member is appearing as a party or representative of a party in a matter before the Department or before a court or appears as a representative of the Department in such a matter, except for Department employees.

 

Section 110.60  Freedom of Choice

 

Nothing contained herein should be construed to limit the rights of parties who use IAS arbitration facilities jointly to select any arbitrator or arbitration procedure acceptable to them.

 

Section 110.70  Procedures for Arbitration Services

 

The Illinois Arbitration Service has been delegated the responsibility for administering all requests for arbitration services under this part.

 

a)         The IAS will designate an Arbitrator to a dispute upon request by the parties or a request pursuant to an agreement which does not require the IAS to provide a panel.  Where such an agreement was executed prior to July 1, 1987, the IAS will designate an employee of the Department who is on the Roster.

 

b)         The IAS will refer a panel of arbitrators to the parties upon a request or a request pursuant to an agreement that calls for the IAS to provide a panel.  Where an agreement was executed prior to July 1, 1987, the names on the panel will consist of employees of the Department.

 

c)         The IAS prefers to act upon a joint request which should be addressed to the Illinois Arbitration Service, Room 300, #1 West Old State Capitol Plaza, Springfield, Illinois, 62701-1217.  In the event that the request is made by only one party, pursuant to the provisions of their Collective Bargaining Agreement, the IAS will submit a panel or designate an arbitrator in accordance with the above; however, any submission of a panel should not be construed as anything more than compliance with a request and does not necessarily reflect the contractual requirements of the parties.

 

d)         The parties are urged to use the Request for Arbitration or Mediation form which has been prepared by the IAS and which is available in quantity at all Department of Labor regional offices and field officer stations or upon request to the Illinois Arbitration Service, Room 300, #1 West Old State Capitol Plaza, Springfield, Illinois 62701-1217.  Those forms are reproduced herein for purposes of identification.

 

e)         A brief statement of the issues in dispute should accompany the request to enable the IAS to submit the names of arbitrators qualified for the issues involved or to designate a qualified arbitrator.  The request should also include a current copy of the arbitration section of the collective bargaining agreement or stipulation to arbitrate, as well as its date of execution.

 

f)         If the forms are not utilized, the parties may request a panel or designation by letter which must include names, addresses, and phone numbers of the parties, the location of the contemplated hearing, the issue in dispute, the number of names desired on a panel request or that it is requested that the IAS designate an arbitrator, the industry involved and any special qualifications of the panel or designee desired.

 

Section 110.80  Arbitrability (Repealed)

 

(Source:  Repealed at 25 Ill. Reg. 7211, effective May 21, 2001)

 

Section 110.90  Nominations and Designations of Arbitrators

 

a)         Upon request, the IAS will submit to the parties the names of five arbitrators unless the applicable collective bargaining agreement as submitted calls for a different number in a panel, or unless the parties themselves request a different number, or unless the agreement or stipulation calls for the IAS to designate the arbitrator.  Together with the submission of a panel, the IAS will provide a biographical sketch for each member of the panel.  This sketch states the background, qualifications, experience, and per diem fee established by the arbitrator.  It states the existence, if any, of other fees such as cancellation, postponement, rescheduling or administrative fees.  (Reference Section 110.130 (b) and (c))

 

b)         When a panel is submitted or an arbitrator designated, an IAS-Department case control number is assigned.  All future communication between the parties and the IAS should refer to the case control number.

 

c)         The IAS considers many factors when selecting names for inclusion on a panel or for designation to a dispute, but the agreed-upon wishes of the parties are paramount.  Special qualifications of arbitrators experienced in certain issues or industries, or possessing certain backgrounds, shall be identified for purposes of submitting panels or designating an arbitrator to accomodate the parties.  The IAS shall also consider such things as industry familiarity, geographical location, general experience, availability, size of fee, and the need to expose new arbitrators to the selection process in preparing panels or designating arbitrators.  The IAS has no obligation to put an individual on any given panel or to designate an individual or place him on a minimum number of panels in any fixed period such as a month or a year.

 

1)         If at any time both parties request, that a name or names be omitted from panels or from designation, such name or names will be omitted, unless such requests are excessive in number.

 

2)         If at any time both parties request that name or names be included on a panel or be designated, such name or names will be included.

 

3)         If only one party requests that a name or names be omitted from a panel, or that specific individuals be added to the panel, or that an individual be designated or not be designated to a dispute, such request shall not be honored.

 

4)         If the issue described in the request appears to require special technical experience or qualifications, arbitrators who possess such qualifications will, where possible, be included on the panel submitted to the parties or be designated.

 

5)         In almost all cases, an arbitrator is chosen from one panel.  However, if either party requests another panel, the IAS shall comply with the request providing that an additional panel is permissible under the terms of the agreement or the other party agrees.  Requests for more than two panels must be accompanied by a statement of explanation and will be considered based on availability of Arbitrators.

 

Section 110.100  Selection and Appointment of Arbitrators

 

a)         The parties should notify the IAS of their selection of an arbitrator. The arbitrator, upon notification by the parties, shall notify the IAS of his selection and willingness to serve.  Upon notification of the parties' selection of an arbitrator, the IAS will make a formal appointment of the arbitrator.

 

b)         Where the contract is silent on the manner of selecting arbitrators, the parties may wish to consider one of the following methods for selection of an arbitrator from a panel:

 

1)         Each party alternately strikes a name from the submitted panel until one remains.

 

2)         Each party advises the IAS of its order of preference by numbering each name on the panel and submitting the numbered list in writing to IAS. The name on the panel that has the lowest accumulated numerical number will be appointed.

 

3)         Informal agreement of the parties by whatever method they choose.

 

c)         The IAS will, on joint or unilateral request of the parties, submit a panel or, when the applicable collective bargaining agreement authorizes, will make a direct appointment of an arbitrator.  Submission of panel or name signifies nothing more than compliance with a request and in no way constitutes a determination by the IAS that the parties are obligated to arbitrate the dispute in question.  Resolution as to the propriety of such a submission or appointment rests solely with the parties.

 

d)         The arbitrator, upon notification of appointment, is required to communicate with the parties immediately to arrange for preliminary matters, such as date and place of hearing.  Hearings are to held within twenty-five (25) days of the date of appointment, unless otherwise dictated by the schedule of the parties.

 

Section 110.110  Conduct of Hearings

 

All proceedings conducted by the arbitrator shall be in conformity with the contractual obligations of the parties.  The  arbitrator must conduct all proceedings in conformity with Section 110.40 (b).  The conduct of the arbitration proceeding is under the arbitrator's jurisdiction and control and the arbitrator's decision is to be based upon the evidence and testimony presented at the hearing or otherwise incorporated in the record of the proceeding.  The arbitrator may, unless prohibited by law, proceed in the absence of any party who, after due notice, fails to be present or to obtain postponement.  An award rendered in an ex parte proceeding of this nature must be based upon evidence presented to the arbitrator.

 

Section 110.120  Decision and Award

 

a)         Arbitrators are required to render awards postmarked not later than thirty calendar days from the date of closing the record as determined by the arbitrator, unless agreed upon by the parties or specified by law.  A failure to render timely awards reflects upon the performance of an arbitrator and may lead to his removal from the IAS Roster.  (Reference Section 110.50 (b)(4)(B)

 

b)         The parties should inform the IAS whenever a decision is delayed.  The arbitrator shall notify the IAS if and when the arbitrator

 

1)         cannot schedule, hear and determine issues promptly, or

 

2)         learns a dispute has been settled by the parties prior to the decision.

 

c)         After an award has been submitted to the parties, the arbitrator is required to submit a Fee and Award Statement showing a breakdown of the fee and expense charges so that the IAS may be in a position to review conformance with stated charges under Section 110.130.  Filing the Statement within fifteen (15) days after rendering an award is required of all arbitrators.  The Statements are not used for the purpose of compelling payment of fees.

 

d)         The IAS encourages the publication of arbitration awards and actively will solicit such publications in professional publications as well as publish and make available decisions and awards by various means in the state.  However, the IAS expects arbitrators it has nominated or appointed not to give publicity on their own to awards they issue.  A statement is to be given to the parties at the Hearing regarding professional publication and returned to the IAS along with a copy of the award and decision and the Statement already mentioned.

 

Section 110.130  Fees and Charges of Arbitrators and the Service

 

a)         Except for collective bargaining agreements executed prior to July 1, 1987, or stipulations to arbitrate executed prior to that date, an administrative filing fee is charged by the IAS.  In instances of a joint request to arbitrate, the administrative fee (payable by two checks or one) is a total of  $200.  Where a request is made for a panel or designation of an arbitrator, the fee chargeable to that party is $100; a bill will be sent to the other party with the designation or panel list notification.

 

b)         The current policy of the IAS permits each of its nominees or appointees to charge a per diem fee, except for Department of Labor employees, who will not charge for their services.  All other nominees or appointees will be enabled to charge a per diem fee and other predetermined fees for services, the amount of which has been certified in advance to the IAS and is less than or equal to the maximum allowed by the IAS.  The arbitrator's fees will be set forth on a biographical sketch which is sent to the parties when panels are submitted and are the controlling fees, if in compliance with the IAS limitations.  The arbitrator shall not change any fee or add charges without giving at least 30 days advance notice to the IAS.

 

c)         The IAS's maximum limitations are $40 an hour or $200 a day, applicable to each day of hearing and to up to and including two days of consideration and award writing, for the per diem fee.  An arbitrator may charge in addition for the costs of phone calls, postage, and up to and including 30 per page for copies.  An arbitrator may charge for mileage at the rate of 32 per mile, measured from either his stated location or a point of departure nearer the hearing in going to a hearing, or measured from the place of hearing to his stated location or a nearer point of ending his journey, on return.  Plane and train or bus fares may be charged on the basis of cost, in which a case copy of the receipt must be included in the statement of expenses and fees to the parties and the IAS, as must be car rental fees and motel fees and meals.

 

d)         The IAS requests that it be notified of any arbitrator's deviation from the policies expressed in this Section.  However, the IAS will not attempt to resolve any fee dispute.

 

(Source:  Amended at 25 Ill. Reg. 7211, effective May 21, 2001)

 

Section 110.140  Reports and Biographical Sketches

 

a)         Arbitrators listed on the Roster shall execute and return all materials related to the case.  They shall also keep the IAS informed of changes of address, telephone number, availability, and of any business or other connection or relationship which involves labor-management relations, or which creates or gives the appearance of advocacy as defined in Section 110.50 (b)(3).

 

b)         The IAS may require each arbitrator listed on the Roster to prepare at the time of initial listing, and to revise, biographical information in accordance with a format to be provided by the IAS at the time of initial listing or biennial review.  Arbitrators may also request revision of biographical information at other times to reflect changes in fees, the existence of additional charges, address, experience and background, or other relevant data.  The IAS reserves the right to decide and approve the format and content of biographical sketches.

 

Section 110.150  Status of Hearings

 

It is the understanding of the IAS that hearings conducted under this regulation remain private hearings of the parties and are not subject to any open meeting act provisions contained in any statute.  In providing the IAS, the Department does not require or request that an arbitrator report to the State, the Department or the IAS violations of any state statutes revealed or that agreements be interpreted to conform to the State or Department position on any matter of law.