Final Offer Arbitration (FOA) – This is a problem solving tactic that uses a combination of mediation and arbitration.

It is used in situations where:

• there is really little left to reach a final agreement,

and

• the differences are so small that, even in the event of disagreement, they do not threaten to deadlock or break off the talks.

Four steps are then taken:

• opponents choose a neutral, acceptable third party / participant in the talks;
• this third participant in the negotiation process tries to find a solution acceptable to both parties, i.e. mediates;
• if mediation fails, both parties are asked to make a final final offer and indicate their final concession;
• the selected third party evaluates the parties’ positions and makes arbitrary decisions on the final findings.

Final Offer Arbitration is a good solution when a conflict arises and the parties are not sure that possible mediation will lead to a consensus. However, the participants of the negotiation process take time into account and are willing to see the talks through to the end.

The third party acting here in the dual role of mediator and arbitrator ensures that the negotiations will be concluded with an agreement within the stipulated time.

Source:https://poradniknegocjatora.pl/final-offer-arbitration-foa/

Supported by Norway through Norway Grants 2014-2021, in the frame of the Programme “Social Dialogue – Decent Work”.