In the event a grievance cannot be resolved, some labor contracts allow for arbitration to settle the grievance. Under the Public Employee Relations Act, certain employees are eligible for arbitration when certain conditions are met.Arbitration can be a viable dispute resolution technique in a wide variety of pension and welfare disputes. The arbitration of claims can take several different forms in Pennsylvania, but can be generally categorized as either compulsory judicial arbitration. There are two models, two mindsets, two approaches to interest arbitration. One is mediation, the other adjudication.