In arbitration, what do leaders of the labor union and the representatives of company management agree to?
A. to bring a third party into their negotiations who has the ability to make binding decisions
B. to negotiate with one another and to understand that management reserves the right to make binding decisions for both parties
C. to bring a third party into their negotiations who will help them negotiate, but who does not have the power to make binding decisions
D. to negotiate with one another and to understand that the labor union reserves the right to make binding decisions for both parties
A. to bring a third party into their negotiations who has the ability to make binding decisions
In arbitration, an arbitrator (the third party) is brought in to hear both sides of the dispute and to make a decision that is usually binding for both parties. This process is used when the union and management cannot reach an agreement through negotiation.