CHRP Knowledge Exam · Question
When a union and management reach an impasse in negotiations, what is the process where a third party makes a binding decision?
Arbitration involves a neutral third party hearing both sides and imposing a final, binding decision on the dispute.
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Question: When a union and management reach an impasse in negotiations, what is the process where a third party makes a binding decision?
Answer options:
- Mediation
- Conciliation ✅ Arbitration
- Fact-finding
Correct answer: Arbitration
Explanation: Arbitration involves a neutral third party hearing both sides and imposing a final, binding decision on the dispute.
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