Table 11.3
The employees are in a contract negotiation with your company and you represent management. You are concerned with maximizing the results for both sides, while the union is focused on getting the best wages and working conditions possible, regardless of the cost to you. During a coffee break the union negotiator tells you he understands where you are coming from but there's only so much money to go around, and his people want as much as possible. Back at the table, you ask the union negotiator if he would put the retirement plan and health care plan on the table as well so you could make an offer to increase their wages. He refuses. Three months go by with no progress. You suggest arbitration by a third party. The union agrees only if both sides must accept what the arbitrator offers. You agree.
-Refer to Table 11.3. You agreed to:
A) final-offer arbitration.
B) binding arbitration.
C) mediation.
D) voluntary arbitration.

Question

Quizplus · Accepted Answer

The situation described in the scenario is an example of binding arbitration, where both parties agree to accept the decision made by a third-party arbitrator. The union only agrees to arbitration if it is binding, meaning both sides must accept the decision, which suggests they have a lot of faith in their bargaining position. Final-offer arbitration and voluntary arbitration were not mentioned in the scenario, and mediation is not the best choice as it implies that both parties will come to a compromise, which may not be acceptable to the union in this case.

Table 11.3 The Employees Are in a Contract Negotiation with Your Company