In case of any labor dispute where collective bargaining does not result in agreement the city of the third class, authority thereof or joint authority, shall offer to submit such dispute to arbitration by a board composed of three persons, one appointed by the city of the third class, authority thereof or joint authority, one appointed by the labor organization representing the employes, and a third member to be agreed upon by the labor organization and the city of the third class, authority thereof or joint authority. The member selected by the labor organization and the city of the third class, authority thereof or joint authority, shall act as chairman of the board. The determination of the majority of the board of arbitration thus established shall be final and binding on all matters in dispute. If after a period of ten days from the date of the appointment of the two arbitrators representing the city of the third class, authority thereof or joint authority and the labor organization, the third arbitrator has not been selected then either arbitrator may request the American Arbitration Association to furnish a list of five persons from which the third arbitrator shall be selected. The arbitrators appointed by the city of the third class, authority thereof or joint authority and the labor organization, promptly after the receipt of such list, shall determine by lot the order of elimination and thereafter each shall in that order alternately eliminate one name until only one name remains. The remaining person on the list shall be the third arbitrator. The term "labor dispute" shall be broadly construed and shall include any controversy concerning wages, salaries, hours, working conditions or benefits including health and welfare, sick leave, insurance or pension or retirement provisions, but not limited thereto, and including any controversy concerning any differences or questions that may arise between the parties including but not limited to the making or maintaining of collective bargaining agreements, the terms to be included in such agreements and the interpretation or application of such collective bargaining agreements and any grievances that may arise. Each party shall pay one-half of the expenses of such arbitration.
53 P.S. § 39951