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07-22-2012, 04:41 PM
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Originally Posted by bauer View Post
from what i understand in arbitration. each side makes an offer and the arbitrator must choose which side is better. they offered Weber 4.75m, a lowball offer, there was no negotiating involved. it was one or the other. maybe it was a tactic, but i'm sure it upset Weber a bit.
Your understanding is not entirely correct. ThirdManIn is right; there is no "offer" involved. Each side merely argues for a certain amount and the arbitrator makes a decision based on those arguments. It's also not "one or the other." The arbitrator can choose any amount that he wants. It doesn't have to be what either side argued for. Usually, an arbitrator will roughly split the difference, which encourages management to "lowball" and the agent to "shoot for the moon." In this case, the awarded $7.5M was closer to the $8.5M that Weber wanted than to the $4.75M that Poile wanted, but was still between the two.

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