In the first section on grievance procedures, this report gives important suggestions to administrators and teachers, discusses the roles of administrators and chapter chairmen in grievance processing, and provides a one-page grievance formula. In the second section on grievance arbitration, the report (1) discusses the rationale for binding arbitration and presents arguments against its use, (2) provides sample State laws on grievance procedures, (3) discusses the enforceability in court of negotiated agreements, (4) describes the role of the American Arbitration Society in grievance arbitration, and (5) provides examples of arbitration cases. An appendix contains a sample grievance procedure. (JF)