The Statute requires that collective bargaining agreements between agencies and unions establish steps that a bargaining unit member can take to pursue a workplace grievance. When disputes can be pursued either through the negotiated grievance procedure or a statutory procedure, the Statute requires unit members to chose between the two.

The last step in the negotiated grievance process is binding arbitration, conducted by a private sector arbitrator whose services are paid for by the union and/or agency. Arbitration may be invoked by an agency or a union, but not an individual. Either an agency or a union (but not an individual) may appeal an arbitrator's decision by filing an "exception" to the arbitrator's award with the Authority. Arbitrator's awards reviewable by the Authority involve, for example, disputes over shift assignments or restrictions on the use of leave. Certain arbitrator awards, including those concerning unacceptable performance, reductions in grade and reductions in pay, are not reviewable by the Authority.

The Authority's review of an arbitrator's award is very limited. In those cases which are proper for review, the Authority may affirm, modify or reverse the Arbitrator's award in whole or in part. Unless an unfair labor practice is involved, the Authority's decision is final and binding and may not be appealed to any court.