The Bargaining Process

The bargaining process occurs when the stakeholders in a certain industry exchange ideas, solve problems, and develop a written agreement. One of the bargaining process objectives is to establish a cordial relationship between the stakeholders involved. For instance, an airline company can mutually develop a written contract with an airport company. The written agreement can entail their responsibilities and expectations through the bargaining process. Therefore, the two companies can positively work with each other. Another objective of the bargaining process is to develop a successful lease negotiation. Lease negotiation is necessary for the aviation industry. A lease agreement shows the airport’s financial stake in credit rating and bonds. Through the lease agreement, investors can predict what the cash flow will look like. Thus, airports that issue bonds without lease agreements are unattractive to investors. The bargaining process also aims at safeguarding the employer’s and employees’ interests. Employees can mutually bargain to eliminate enormous cuts in payment and benefits. Ideally, employees can also use the duty to bargain to get rid of such disadvantages.


During the bargaining process in the aviation industry, disputes may occur. The types of disputes in the aviation industry are commercial and non-commercial disputes (STA, 2019). Some of the causes of dispute include Airline Marketing, Ticket Selling, and Currency Remittance restrictions, discrimination of taxes, and charges for Air traffic control (STA, 2019). Strategies towards settling such aviation disputes include direct negotiation and mediation (STA, 2019). Direct negotiation is simply negotiating with the parties involved. Mediation has been used to settle non-commercial issues in the aviation industry for a long time now. The mediator comes up with a proposal that helps the parties involved in the dispute to conduct a direct negotiation. If an aviation dispute fails to be resolved by the parties involved, impasse resolution can be used. Impasse resolution aims to resolve a bargaining conflict through intervention by a third party. The methods of impasse resolution include fact-finding, interest arbitration, and mediation arbitration.

The fact-finding process is a semi-judicial process where a hearing is made when the impasse in dispute is reached. The hearing is meant to investigate where the parties differ. In this case, the parties are required to organize their points and present them (Public Employee Relations Board, 2022). Through the hearing, the gap existing between the parties in dispute is identified. A report is usually written and released to the press, therefore, educating the public. The fact-finding process conveys its finality on the dispute mainly through recommendations. In interest arbitration, a third party listens to the dispute and decides to resolve the dispute at hand. The arbitrator resolves the impasse by determining the bargaining agreement’s terms and the parties’ issues. The mediation-arbitration method is basically a combination of mediation and arbitration to resolve an impasse. Through this method, an impasse is resolved in a short span. It only requires the parties involved to be flexible and open for more accessible mediation.

In summary, the bargaining process should be conducted at all industries and businesses as it is helpful to both the employer and employee. However, it is necessary to understand how the bargaining process works to achieve its objectives. Sometimes, a dispute may occur during the bargaining process. It is the responsibility of the parties to resolve the dispute before the stipulated time. Failure to that, an impasse may develop, making the parties involve a third party to resolve the dispute. The impasse resolution method should be chosen carefully depending on the industry and the dispute to resolve a dispute successfully.

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STA. (2019). Overview: International Civil Aviation Dispute Settlement – STA Law Firm. Retrieved 10 February 2022, from

Public Employee Relations Board. (2022). Section 527 – Impasse Resolution Proceedings: Non-compensation Negotiations | perb. Retrieved 10 February 2022, from