Mediation is the most common form of third-party intervention in collective bargaining and also the least intrusive. Mediation is a procedure in which a neutral party joins the negotiation to assist the TWU Local 100 and MTA in reaching an agreement. The mediator has no power to impose a settlement on the parties. Rather the mediator facilitates the bargaining process by serving as a go-between in the negotiations.
The central purpose of the mediator is to help the parties reach agreement since the mediator cannot impose sanctions or costs on the negotiators. The major influence the mediator can have on the speed with which an agreement is reached is by improving the flow of communication between the bargainers and suggesting possible areas of compromise. Mediation will usually be more effective in some types of disputes than others. For example in a labor negotiation where one party has boxed itself into a ‘must strike’ position through inexperienced or clumsy bargaining a skillful mediator can suggest a compromise that allows an effective face saving retreat. Another important service the mediation can perform is facilitating concession. As noted earlier each negotiator must be careful not to convey weakness to the other side by ‘coming clean’ too soon. A mediator can therefore suggest x as a point of settlement when neither parties would have dared to put it on the table themselves.
In other disputes/situations mediation may be relatively ineffective in bringing about settlement. This is particularly true when matters of principle are involved or when the costs of disagreement are too low to induce the parties to compromise.
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