Arbitration and mediation are alike in that both involve an impartial third party to help in the negotiation process. The differences in these two approaches is that an arbitrator's decision is binding and both parties agree to this on the front end; a mediator encourages the two conflicting parties to continue to negotiate and may make suggestions in pursuit of a resolution.

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Mediation is a process whereby an impartial third party steps in to help bring the two parties to resolution. The mediator makes suggestions but does not bind the parties to an agreement. An arbitrator is an agreed-upon third party who listens to both parties and prepares a binding decision in the labor dispute.

Arbitration and Mediation Are Alike in That Both Involve an Impartial