Negotiation Difficult Negotiations: Arbitration in Term Paper

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Regardless, it is difficult to conceive of a different type of negotiation process that could have better satisfied both parties or resulted in a more expedient settlement. One factor to remember is that that the issue in dispute was not the correctness of company policy, as it was a matter of law that rest breaks be mandated and that employees were not required to pay to maintain their uniforms, rather company compliance and compensation was the question. Fact-finding required verification from outside parties who were deemed to be objective enough in determining whether the various chains had been compliant with California law or not. Another factor to remember is that arbitration can result in a scenario where disputants are "less than fully committed" to seeing the resolution put through and during this negotiation as many of the plaintiffs were no longer working for the Red Lobster or the Olive Garden they had no leverage to 'walk out' of negotiations if nothing could be settled in a more informal mediation process (Lewicki & Saunders 2005: 49). Furthermore, the fact that the plaintiffs came from numerous chains meant that the two parties did not have a long-standing and general relationship that might emotionally compel one side to yield to the other side without formal pressure from an arbiter.

The eventual settlement did not dictate any change in the restaurant chain's practices, as the practices themselves were not the issue, only the issue of compliance and the restaurant chains' responsibility in ensuring its managers upheld state law. "However, attorneys for the class do not foresee any ongoing problems," since 2002, the chains eventually 'cleaned up their acts' as reports of employees missing their meal and rest breaks declined sharply, and "restaurant managers who did not permit employees to take breaks have been subject to discipline by the company," which was not the case before the lawsuit and employees were no longer required to purchase uniforms at any branch ("Red Lobster and Olive Garden Employees Settle Meal and Rest Break Class Action for $9.5 Million," 2006, Wage Law: California Wage and Hour Law).

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The settlement eventually reached compromise. "It reflects a payment of less than 100% of the liability so that the company would have an incentive to pay the workers now, rather than fight the case to trial and the courts of appeal" ("Red Lobster and Olive Garden Employees Settle Meal and Rest Break Class Action for $9.5 Million," 2006, Wage Law: California Wage and Hour Law). The settlement "did allow anyone who wanted to opt out to do so, to disclaim their share of the settlement, and to reserve the right to file their own lawsuit, which some have done, given that they feel the settlement awarded was too small ("Red Lobster and Olive Garden Employees Settle Meal and Rest Break Class Action for $9.5 Million," 2006, Wage Law: California Wage and Hour Law).

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