43 Pa. Stat. § 211.36
Whenever a controversy shall arise between an employer and his employes which is not settled either in conference between representatives of the parties or through mediation in the manner provided in the preceding sections, such controversy may, by agreement of the parties, be submitted to arbitration, one person to be selected by the employer, one person to be selected by the employes, and a third to be selected by the representatives of the employer and employes, and in the event of any such appointment or selection not being made upon the request of the parties in the controversy, the department may select the third person to arbitrate the matter submitted: Provided, however, That the failure or refusal of either party to submit a controversy to arbitration shall not be construed as a violation of the policy or purpose of this act, or of any provision thereof, nor shall failure or refusal to arbitrate constitute a basis for any action at law or suit in equity.
43 P.S. § 211.36