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What is the standing of an arbitrator's decision in a labor dispute?
AIt is advisory and either side may ignore it
BIt is final and binding on union and employer
CIt applies only if the union members ratify it
DIt lapses when the labor contract is renewed
Answer & Solution
Correct answer: B. It is final and binding on union and employer
1. Arbitration settles a labor-management dispute by handing it to a third party, either a single arbitrator or a panel.
2. The decision that comes back is final and binding on both the union and the employer.
3. That is exactly what distinguishes arbitration from mediation, where the neutral can only suggest a compromise.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 8 "Managing Human Resources and Labor Relations", section Grievance Handling and Arbitration_
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