The Impact of Binding Interest Arbitration on Negotiation and Process Outcome

Abstract

The subject of conflict and the methods of conflict resolution are of central importance to collective bargaining. The major concern of policy makers and of negotiators in public sector labor relations, in particular, is to find a method of conflict resolution which not only would avoid work stoppages but also would be compatible with free collective bargaining. Binding interest arbitration is suggested as the method of conflict resolution which would accomplish both the purposes. Four systems of binding interest arbitration-namely, the final-offer-selection, last-offer-by-issue, open-award, and compromise—award—are being experimented with in several negotiation situations Some labor relations practitioners have expressed experiences in contradiction with the theoretical expectations of the impact of these four systems of binding interest arbitration on negotiation process and outcome This experimental study confirms the theoretical expectations, particularly of the final-offer-selection and last-offer-by-issue systems. The former system generates genuine negotiations, while the latter subverts collective bargaining.