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During a contract negotiation, the management of RMS, Inc. and its employee union fail to reach an agreement on an issue related to night shift pay scales. A neutral third party is called in to actively work with both sides and help them reach a settlement. This party suggests several ideas that could help in solving the issue. The process used by the third party in the given scenario is referred to as _____.

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Answer:

The correct answer is mediation

Explanation:

Mediation is an effective method to resolve problems between two parties. Usually, to resolve conflicts, a third party is called to start a negotiation process through effective communication channels. The management of RMS is using mediation technique by calling a neutral third party to discuss the issues with the employee union. The third party in this given scenario is acting as a mediator.

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