It is enacted by the General Assembly as follows:

SECTION 1. Section 28-9-1 of the General Laws in Chapter 28-9 entitled "Arbitration of Labor Controversies" is hereby amended to read as follows:

28-9-1. Enforceability of agreement to arbitrate any controversy. -- (a) A provision in a written contract between an employer and an association of employees, a labor union, trade union, or craft union, or between an association of employers and an association of employees, labor unions, trade unions, or craft unions, to settle by arbitration any controversy shall be valid, irrevocable, and enforceable, except upon such grounds as exist in law or in equity for the revocation of the contract; provided, however, that the provisions of this chapter shall apply but shall not be limited to controversies respecting terms and conditions of employment. Unless the parties agree otherwise in writing , {ADD that the arbitrator shall have no authority to modify the penalty imposed by the employer ADD} in the arbitration of matters relating to the disciplining of employees, including, but not limited to, termination, suspension, or reprimand, the arbitrator shall have the authority to modify the penalty imposed by the employer and/or otherwise fashion an appropriate remedy.

SECTION 2. This act shall take effect upon passage.