California Code, Public Utilities Code - PUC § 120502

In case of a labor dispute over wages, salaries, hours, working conditions, and benefits on the making or maintaining of collective-bargaining agreements and the terms to be included in such agreements, which is not resolved by negotiations in good faith between the board and the labor organization, upon the joint request of both, the board and the labor organization may submit the dispute to the decision of the majority of an arbitration panel.

The arbitration panel shall be composed of one representative of the board, and one representative of the labor organization, and they shall endeavor to agree upon the selection of the third member.  If they are unable to agree, the names of five persons experienced in labor arbitration shall be obtained from the State Conciliation Service.  The labor organization and the board shall, alternately, strike a name from the list so supplied, and the name remaining, after the labor organization and the board have stricken four names, shall be designated as the third arbitrator.  The labor organization and the board shall determine by lot who shall first strike a name from the list.  The decision of a majority of the arbitration board shall be final and binding upon the parties thereto.  The expenses of arbitration shall be borne equally by the parties.  Each party shall bear its own costs.