During a contract negotiation, the management of RMS, Inc. and its employee union fail to reach an agreement on an issue related to night shift pay scales. 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 solving the issue. The process used by the third party in the given scenario is referred to as_____.
A) arbitration
B) mediation
C) fact-finding
D) conciliation

Question

Quizplus · Accepted Answer

The process used by the third party in the given scenario is mediation, where a neutral third party actively works with both sides to help them reach a settlement. Arbitration involves a neutral third party making a binding decision for both sides, while fact-finding involves an independent third party investigating and making non-binding recommendations. Conciliation involves a third party facilitating communication between both sides but has no authority to make decisions or recommendations.

During a Contract Negotiation, the Management of RMS, Inc