Within 7 days after receipt of a request from 1 or both parties for arbitration of a dispute, the employment relations commission shall select from its panel of arbitrators, as provided in section 5 of Act No. 312 of the Public Acts of 1969, as amended, being section 423.235 of the Michigan Compiled Laws, 3 persons as nominees for impartial arbitrator or chairperson of the arbitration panel. Within 5 days after the selection of nominees, each party peremptorily may strike the name of 1 of the nominees. Within 7 days after this 5-day period, the employment relations commission shall designate 1 of the remaining nominees as the impartial arbitrator.