In arbitration, what do leaders of the labor union and representatives of company management agree to?
A) To bring a third party into their negotiations who will help make them negotiate, but who does not have the power to make binding decisions.
B) To bring a third party into their negotiations who has the ability to make binding decisions.
C) To negotiate with one another and to understand that management reserves the right to make binding decisions for both parties.
D) To negotiate with one another and to understand that the labor union reserved the right to make binding decisions for both parties.
A) To bring a third party into their negotiations who will help make them negotiate, but who does not have the power to make binding decisions.
C) To negotiate with one another and to understand that management reserves the right to make binding decisions for both parties.
To find the correct answer to this question, let's break down the options one by one:
A) To bring a third party into their negotiations who will help make them negotiate, but who does not have the power to make binding decisions.
B) To bring a third party into their negotiations who has the ability to make binding decisions.
C) To negotiate with one another and to understand that management reserves the right to make binding decisions for both parties.
D) To negotiate with one another and to understand that the labor union reserved the right to make binding decisions for both parties.
In the context of arbitration, it is important to understand that arbitration is a method used to resolve disputes between labor unions and companies when collective bargaining negotiations fail. The third party involved in arbitration is called an arbitrator.
Now, let's analyze each option:
Option A suggests that the third party does not have the power to make binding decisions. This contradicts the purpose of arbitration, as the role of the arbitrator is to make a final and binding decision to resolve the dispute. So, option A is unlikely to be correct.
Option B suggests that the third party has the ability to make binding decisions. This aligns with the purpose of arbitration, as the arbitrator's decision is binding and enforceable by law. Therefore, option B seems to be the most suitable choice.
Option C states that management reserves the right to make binding decisions for both parties. This goes against the principle of arbitration, where an impartial third party makes the final decision. So, option C is unlikely to be correct.
Option D suggests that the labor union reserves the right to make binding decisions. However, in arbitration, the purpose is to have a neutral party, the arbitrator, make the final decision. Thus, option D is unlikely to be correct.
Considering this analysis, the correct answer is B) To bring a third party into their negotiations who has the ability to make binding decisions.