If management and labor have reached a bargaining deadlock, they may try to engage in mediation. If mediation fails, what is the next possible “friendly” step?

If mediation fails to resolve a bargaining deadlock between management and labor, the next possible "friendly" step is often arbitration. Arbitration is a process in which a neutral third party, the arbitrator, is brought in to make a binding decision on the unresolved issues. This decision is typically based on evidence and arguments presented by both parties during a hearing.

Unlike mediation, where the mediator facilitates communication and negotiation but does not make a binding decision, arbitration results in a final and legally binding resolution. Arbitration can be considered a "friendly" step because it allows both parties to avoid the more confrontational and potentially disruptive step of a strike or lockout.

However, it's important to note that while arbitration is a more cooperative alternative to industrial action, it is still a formal process with a third party making a binding decision. The outcome may not always be entirely satisfactory to both parties, but it provides a resolution without the potential negative consequences of a work stoppage.