Labor - Management Relations 355
fi rst to discover the confl ict. They then encourage the parties to resume
bargaining. Mediators may suggest compromise positions that bridge the
gap in negotiations, or they may act as intermediaries to persuade the parties
that their proposals are unrealistic. Mediators serve only an advisory role.
They have no power to compel the settlement of disputes. Mediation fi ndings
are not binding unless approved by both parties in the dispute.
Fact Finding Fact fi nding involves holding an adversarial hearing at which
each side presents its position on the issues in dispute. The fact - fi nding
body studies the evidence presented at the hearing and then makes recom-
mendations for a fi nal settlement.
Fact - fi nder recommendations are not binding on the parties. However,
these recommendations are often made public, and the threat of unfavor-
able publicity can make both sides more willing to reach a negotiated
settlement. Fact fi nding is grounded in the belief that public opinion will
encourage the parties to accept the fact fi nder ’ s report so as not to appear
unreasonable.
Interest Arbitration Interest arbitration is the procedure used when
mediation and fact fi nding have not resolved bargaining impasses. An
arbitrator will hold an adversarial hearing and, based on the evidence
presented, determine the terms of the fi nal agreement. Arbitration resolves
confl icts without the use of a strike. State and local governments typically
use arbitration as a substitute for permitting the right to strike. Only statutes
may compel the use of arbitration to conciliate contract disputes. The
courts lack jurisdiction to compel arbitration in the absence of statutory
authority. To discourage routine reliance on arbitration, many statutes
impose the cost of arbitration on the parties.
Interest arbitration has been criticized for intruding on local government
sovereignty. The third party is unaccountable to the voters or elected
offi cials, yet makes decisions that affect the employer - employee relationship.
To avoid this concern, many statutes require that arbitration decisions be
approved by a majority of the appropriate legislative body.
Public sector arbitration varies across the states, and there are several
forms. Compulsory binding arbitration requires that any dispute not settled
during negotiations must end in arbitration. Arbitrators are free to make
awards based on the evidence presented. The arbitrator is free to take any
reasonable position and is usually inclined to make a decision that accom-
modates the positions of both parties in order to create a realistic and
effective agreement.