B) each side has an incentive to shape the arbitrator’s final judgment by submitting an
offer that is self-serving
C) it produces a high settlement rate (typically 60€80%), though settlement is not
guaranteed
D) the parties involved are motivated to submit a settlement that will be viewed as most
fair in the eyes of the arbitrator
Azurus Fabrics, a textile manufacturing factory, has hit a rough patch with its
employees. The employees don’t seem to be satisfied with the way the management has
been handling certain issues. According to the workers, there has been no increase in
the workers’ compensation despite the fact that there were five employee deaths in the
previous year. They also claim that, a year ago, the chief production officer had
promised to increase their compensation by now, but has done nothing so far. The labor
union threatens to go on a strike if the issue is not resolved soon. Assume that the
management and the laborers intend to iron out their differences. Which of the
following, if true, can help mend the relations and restore the lost trust?
A) The labor union leader sends a letter to the management to urge them to make a
decision in favor of the employees.
B) The management and the labor union leader decide to meet and talk things through
and plan how to avoid problems in future.
C) The management decides to compensate and promote the labor union leader so that
he can discourage the employees from going on strike.
D) The management and the labor union chief decide to meet intermittently, i.e.,
whenever they can, to have a one-on-one to follow up on the issue.