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(a) Whenever an impasse procedure is required by the provisions of this chapter, the following procedure shall be followed:
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(1) the parties shall submit to the PERB and to each other written statements clearly and concisely outlining the issues in dispute together with a certificate as to the good faith of the statements;
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(2) the PERB shall assist the parties in voluntarily resolving the disputes;
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(3) upon request of either party, or upon its own motion, the PERB shall submit the unresolved issues to a mediator selected by the PERB from a list of qualified mediators chosen pursuant to subsection (k) of section 365 of this chapter. The mediator shall be chosen within 3 days after being requested by either party. The mediator shall have 10 days after his appointment in which to achieve a voluntary resolution of the disputed issue. If a Federal Mediation Conciliation Service (“FMCS”) mediator is appointed, then the 10 day provision applies once the mediator arrives in the territory;
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(4) if no voluntary resolution is achieved by the mediator within the time provided, or if the mediator declares earlier than the expiration of the time provided that a voluntary resolution is not likely, then the remaining issues in dispute shall be submitted by the mediator to an arbitration panel for a decision which shall be final and binding on the parties. The parties may mutually agree to submit the dispute to the final and binding decision of an arbitration panel prior to the appointment of a mediator, and if so agreeing, shall notify the PERB;
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(5) an arbitration panel shall be selected promptly, consisting of three members. One member shall be appointed by the public employer, one member shall be appointed by the exclusive representative, and the third shall be selected by the other two. If any member is not appointed or the third member not agreed to within five calendar days after the PERB has determined that an arbitration panel is required pursuant to this section, then the PERB shall request the American Arbitration Association to provide an arbitrator or arbitrators necessary to complete the panel in accordance with the voluntary labor rules of the Association. The arbitration panel shall, within seven calendar days after its formation, commence to hear the issues in dispute by taking whatever actions it deems necessary to fairly investigate, hear, determine, and decide the disputed issues. The arbitration panel shall have the power to subpoena witnesses and documents and administer oaths. On or before fifteen days after the date of its formation, the arbitration panel shall deliver its decisions in writing to the public employer, the exclusive representative, and the PERB. The panel’s decision shall be final and binding on both parties to the dispute and the parties shall immediately take whatever action is necessary to carry out and effectuate the decisions.
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(b) The costs of arbitration shall be borne equally between the public employer and the exclusive representative. The costs of mediation shall be borne by the PERB.
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(c) A public employer and an exclusive representative may enter into a written agreement setting forth an arbitration procedure for the settlement of disputes concerning the interpretation, compliance with, or application of an existing agreement or for the settlement of disputes in the negotiation of an initial or new agreement which procedure may be followed in lieu of the procedure set forth in this section; provided, the procedure agreed to culminates in a final decision binding on both parties.