IN 1974, THE FIRST GRIEVANCE OF A YOUTHFUL OFFENDER UNDER THE SUPERVISION OF THE CALIFORNIA YOUTH AUTHORITY WAS SUBMITTED TO ARBITRATION AND INVOLVED AN INMATE CERTIFIED BY INSTITUTIONAL STAFF AS READY FOR PAROLE. THE OUTCOME OF THE HEARING WAS A TWO-TO-ONE DECISION IN FAVOR OF THE GRIEVANT. IN 1975, THE NEW YORK LEGISLATURE ENACTED A STATUTE THAT WILL PERMIT THE STATE'S OVERSIGHT COMMISSION OF CORRECTION TO REFER INMATE GRIEVANCES TO INDIVIDUAL ARBITRATORS. OFFICIALS OF THE VIRGINIA DEPARTMENT OF CORRECTIONS PUBLICLY ENDORSED A PLAN IN 1975 THAT INVOLVES THE SUBMISSION OF PRISONER COMPLAINTS TO ARBITRATION. IN 1975 A SHERIFF IN A FLORIDA COUNTY ANNOUNCED HIS APPROVAL OF A SYSTEM FOR SUBMITTING TO ARBITRATION THE GRIEVANCES OF INMATES IN PENAL FACILITIES, AND THE CALIFORNIA DEPARTMENT OF CORRECTIONS IN 1975 INSTITUTED THE FOUNDATION FOR AN EXPERIMENT IN ARBITRATION IN ONE OF ITS INSTITUTIONS IN STOCKTON. ALL THE CASES SERVE TO PINPOINT A FUNDAMENTAL DIFFERENCE BETWEEN ARBITRATION IN THE CORRECTIONAL ENVIRONMENT AND ARBITRATION IN THE FIELD OF LABOR RELATIONS. THE ABSENCE OF A CONTRACT IN ANY MEANINGFUL SENSE IN CORRECTIONS INFERS THAT THE DEFINITION OF A GRIEVANCE IS VIRTUALLY UNLIMITED. MUTUALLY ACCEPTABLE AGREEMENTS REACHED DURING ARBITRATION HEARINGS OFTEN COME AS THE RESULT OF A NARROWING OF ISSUES OR A CLARIFICATION OF POLICIES. FUNDAMENTAL ELEMENTS OF ARBITRATION EXIST IN THE CORRECTIONAL ENVIRONMENT, AND DISPUTES CAN BE SETTLED IN A VARIETY OF WAYS. AS THE COST OF VIOLENCE AND LITIGATION ESCALATES, ARBITRATION IS BECOMING A VIABLE CORRECTIONAL GRIEVANCE PROCEDURE. (DEP)