This publication is part of a three-volume series of manuals designed to serve both as instructional guides and as ready references to some of the more complex problems of public school collective bargaining. The series is intended for use primarily by school board members, educational administrators, and other individuals interested in collective bargaining in public schools. This particular manual focuses on arbitration as a means of solving grievances arising out of the employer-employee relationship in public schools. Most of the manual consists of part 1, a narrative section that discusses various aspects of the arbitration process. Part 2 presents five simulation training exercises designed for either group or individual use. At the end of each exercise, there are several discussion questions and a proposed solution to the problem. Part 3 presents a bibliography of various publications related to arbitration, including a number of relevant bibliographies, and lists a number of service organizations involved in the area of arbitration. (JG)