This monograph was prepared as an initial effort in development of a body of material for training public sector managers. It sets forth the basic principles of grievance arbitration covering discipline in the public sector. Major sections are devoted to the topics of just or proper cause for discipline, due process, the nature of discipline, and substantive aspects of discipline, including insubordination, dishonesty, absenteeism, off-the-job offenses, and union officer misconduct. The author notes that collective bargaining and its grievance-arbitration system has tended to replace the civil service appeals machinery. Where this has happened, the tendency has been to require more attention to due process, to make discipline more consistent, to pay more attention to mitigating factors, and to require that discipline be progressive. The rules that arbitrators apply to discipline cases in the public sector are similar to those that have been developed with regard to private employment. (Author/IRT)