HRM textbook

CHAPTER 15 LABOR RELATIONS AND COLLECTIVE BARGAINING 513
The mediator usually holds meetings with each party to determine where each stands
regarding its position, and then uses this information to find common ground for
further bargaining. The mediator is always a go-between, without authority to dictate
terms or make concessions. He or she communicates assessments of the likelihood of a
strike, the possible settlement packages available, and the like.
In certain situations, as in a national emergency dispute, a fact finder may be
appointed. A fact finder is a neutral party who studies the issues in a dispute and
makes a public recommendation for a reasonable settlement. 57 Presidential emergency
fact-finding boards have successfully resolved impasses in certain critical
transportation disputes.
Arbitration is the most definitive type of third-party intervention, because the
arbitrator often has the power to determine and dictate the settlement terms. With
binding arbitration, both parties are committed to accepting the arbitrator s award.
With nonbinding arbitration, they are not. Arbitration may also be voluntary or
compulsory (in other words, imposed by a government agency). In the United States,
voluntary binding arbitration is the most prevalent.
There are two main topics of arbitration. Interest arbitration centers on working
out a labor agreement; the parties use it when such agreements do not yet exist or
when one or both parties are seeking to change the agreement. Rights arbitration
really means contract interpretation arbitration. It usually involves interpreting
existing contract terms, for instance, when an employee questions the employer s
right to have taken some disciplinary action. 58
SOURCES OF THIRD-PARTY ASSISTANCE Various public and professional
agencies make arbitrators and mediators available. For example, the American
Arbitration Association (AAA) represents and provides the services of thousands
of arbitrators and mediators to employers and unions. The U.S. government s Federal
Mediation and Conciliation Service provides both arbitrators and mediators (see
Figure 15-5). 59 In addition, most states provide arbitrator and mediation services.
STRIKES A strike is a withdrawal of labor. There are four main types of strikes.
An economic strike results from a failure to agree on the terms of a contract. Unions
call unfair labor practice strikes to protest illegal conduct by the employer.
A wildcat strike is an unauthorized strike occurring during the term of a contract.
A sympathy strike occurs when one union strikes in support of the strike
of another union. 60 For example, in sympathy with South Korean Hyundai workers,
the United Auto Workers organized a rally outside of Hyundai s technical center
in Superior Township, Michigan and took steps to hold other rallies. 61
The likelihood of and severity of a strike depends partly on the parties willingness
to take a strike. 62 For instance, a number of years ago major-league baseball owners
impasse
Collective bargaining situation that occurs
when the parties are not able to move further
toward settlement, usually because one party
is demanding more than the other will offer.
mediation
Intervention in which a neutral third party tries
to assist the principals in reaching agreement.
fact finder
A neutral party who studies the issues in a
dispute and makes a public recommendation
for a reasonable settlement.
arbitration
The most definitive type of third-party
intervention, in which the arbitrator usually
has the power to determine and dictate the
settlement terms.
interest arbitration
Arbitration enacted when labor agreements
do not yet exist or when one or both parties
are seeking to change the agreement.
rights arbitration
Arbitration that interprets existing contract
terms, for instance, when an employee
questions the employer s right to have taken
some disciplinary action.
strike
A withdrawal of labor.
economic strike
A strike that results from a failure to agree
on the terms of a contract that involve
wages, benefits, and other conditions
of employment.
unfair labor practice strike
A strike aimed at protesting illegal conduct
by the employer.
wildcat strike
An unauthorized strike occurring during the
term of a contract.
sympathy strike
A strike that takes place when one union
strikes in support of the strike of another.