Section 3. In the event that the secretary of labor and workforce development finds that a labor dispute has not been settled by collective bargaining and imminently threatens a substantial interruption in the production or distribution of essential goods or services, he shall certify such dispute to the governor. The governor shall thereupon conduct such investigation of the dispute as he deems appropriate under the circumstances but the investigation shall include, unless the governor deems it impracticable, an informal hearing before the governor, the secretary of the executive office of public safety and the secretary of labor and workforce development at which the parties to the dispute shall be heard upon the sole question whether an interruption is imminent and would curtail the availability of essential goods or services to such an extent as to endanger the health or safety of any community. If the governor so finds and proclaims, and further finds and proclaims that the intervention of government will be in the public interest and in accordance with the policy of this chapter, then he is authorized to invoke either or both of the following procedures for the settlement of the dispute:—

(A) The governor may require the employer and representatives of the employees, parties to the dispute, to appear before a moderator appointed by him and show cause why they should not submit the dispute to arbitration. The moderator shall be an impartial person skilled in industrial relations. The moderator may act as mediator or conciliator to such an extent as he deems appropriate and, if the dispute is not settled, shall endeavor to induce the parties to submit the dispute to arbitration in such form as may be mutually acceptable, and to this end he may conduct such investigation and public or private hearing as he deems appropriate. If either or both of the parties refuses to comply with the request of the moderator to submit the dispute to arbitration, the moderator, without expressing an opinion on the merits of the dispute, shall make public his findings as to the responsibility of either or both parties for the failure to reach an agreement to arbitrate the dispute.

A submission to arbitration shall be arranged or the findings of the moderator published within fifteen days after the governor's proclamation or such additional period as may be mutually agreeable to the parties. For fifteen days after the governor's proclamation and any additional period mutually agreeable to the parties, no change shall be made, except by mutual agreement, in the rates of pay, wages, hours, or other terms or conditions of employment in effect prior to the time the events giving rise to the dispute took place, and there shall be no interruption in the production or distribution of the essential goods or services produced or distributed by the parties to the dispute.

(B) The governor may request the parties voluntarily to submit the dispute to an emergency board of inquiry of three members empowered to recommend the terms upon which the parties should settle the dispute, including the date, prospective or retroactive as of which its recommendations should be made effective. To this end the governor may request the employer forthwith to designate a member to represent industry and the representatives of the employees to designate a member to represent labor, neither of whom shall be a person who has heretofore participated in the dispute. The industry and labor members shall select a third impartial member to represent the general public. If such third person is not selected within seventy-two hours, the governor may appoint the third member either before or after arranging a submission of the dispute. In the former event the emergency board shall meet with the parties and report to the governor within five days whether the parties have agreed to comply with his request to submit the dispute for its findings and recommendations. If there is no agreement the emergency board shall be discharged.

If a submission is arranged the emergency board shall conduct its hearing and make and file its findings and recommendations with the governor within a period of thirty days after the submission of such dispute, unless the parties shall mutually agree to extend the period. Prior to the filing of the findings and recommendations and for ten days thereafter, no change shall be made, except by mutual agreement of the parties, in the rates of pay, wages, hours, or other terms or conditions of employment in effect prior to the time the events giving rise to the dispute took place, and there shall be no interruption in the production or distribution of the essential goods or services produced or distributed by the parties to the dispute. Within ten days after the report of the emergency board is filed each party shall notify the governor whether it accepts the recommendations.