During contract negotiations, the management of Wild Mist Inc. and its employee union fail to reach an agreement on an issue related to retirement benefits. A neutral third party is called in to come up with a solution and make a decision on behalf of the management and the union. In the context of bargaining impasses, the process used in the given scenario is referred to as _____.
A) collusion
B) conciliation
C) arbitration
D) mediation

Question

Quizplus · Accepted Answer

The process used in the given scenario is referred to as arbitration, which involves a neutral third party making a final, binding decision on behalf of the parties involved in the bargaining impasse. Mediation involves a neutral third party trying to facilitate a negotiated agreement between the two sides, while conciliation involves a neutral third party offering suggestions and advice to the parties to help them reach a mutually acceptable agreement. Collusion refers to secret cooperation between two or more parties for an illegal or unethical purpose, which is not applicable in this scenario.

During Contract Negotiations, the Management of Wild Mist Inc