Management of a firm and labor submit to compulsory arbitration when the federal

Question

Management of a firm and labor submit to compulsory arbitration when the federal government requests arbitration as a means of eliminating a prolonged strike that threatens to disrupt the economy. requests mediation as a means of eliminating a prolonged strike that threatens to disrupt the economy. appoints a member of the management as an arbitrator to resolve disputes that threaten to disrupt the economy. appoints a third party as a mediator to resolve disputes that threaten to disrupt the economy. appoints a member of the union as an arbitrator to resolve disputes that threaten to disrupt the economy.

Explanation / Answer

Management of a firm and labor submit to compulsory arbitration when the federal government

We would use the elimination technique to arrive at the right answer

The key is the firm and the labor management have agreed to a COMPULSORY arbitration which will be possible only if either both the parties have their representative in the arbitrator panel created by fed Govt OR all the members are not related to either of the parties. Hence the options 3 and 5 are ruled out

Next fed Govt cannot intervene directly (unless there is a request for a mediation) and hence option 4 which talks about APPOINTMENT is eliminated

Next as we know arbitration is more formal than mediation and involves presenting testimony and evidences whereas mediation is just negotiation with the help of a 3rd party. Since both the parties have submitted for arbitration, Fed govt. definitely has requested for arbitration rather than mediation and thus Option 1 is the correct answer

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