During contract negotiations, the management of RMS Inc. and its employee union fail to reach an agreement on an issue related to pay scales for the night shift. A neutral third party is called in to actively work with both sides and help them reach a settlement. This party suggests several ideas that could help in resolving the issue, and the management and the union eventually make a decision and reach a settlement. In the context of bargaining impasses, the process used in the given scenario is referred to as _____.
A) arbitration
B) mediation
C) collusion
D) conciliation

Question

Quizplus · Accepted Answer

The process described is mediation, where a neutral third party helps the disputing parties to reach a settlement by suggesting ideas and facilitating communication, without imposing a decision.

During Contract Negotiations, the Management of RMS Inc