Labor and management at the Brookwood Company have reached an impasse in their efforts to negotiate an acceptable labor-management agreement. The two sides have agreed to bring in an arbitrator. If the arbitrator issues a ruling that the union does not like, it can veto the decision.

Question

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This scenario describes a "final offer" or "baseball" arbitration, where both sides submit their final proposals to the arbitrator and the arbitrator must select one without any modifications or compromises. The union does not have the ability to veto the decision in this type of arbitration.

Labor and Management at the Brookwood Company Have Reached an Impasse