There is evidence that interest arbitration leads to higher increases in compensation than increases obtained pursuant to bargaining where a strike is the final dispute resolution mechanism

Question

Quizplus · Accepted Answer

Studies have shown that interest arbitration, which is used as a means to resolve bargaining disputes without resorting to strikes, often results in higher compensation increases for workers compared to traditional bargaining methods that include the possibility of a strike. This is because the arbitration process tends to favor outcomes that are more equitable or middle-ground, which can lead to higher wage increases than employers might concede in a strike situation, where they face the pressure of operational disruptions.

There Is Evidence That Interest Arbitration Leads to Higher Increases