Despite the best efforts of each side, negotiations do not always produce a timely agreement. On occasion, both sides realize that they simply cannot resolve some of their key differences, and as such, a stalemate occurs. An impasse occurs when one party demands more than the other side is willing to give, thereby making an agreement is impossible.
While many factors can lead to an impasse, some of the most common include:
- Bargaining history between labor and management;
- Personalities conflict and reasoned conversation becomes difficult;
- People who have the authority to enter into an agreement are not at the bargaining table;
- Limits of each side’s bargaining authority;
- Internal union or company politics; and
- Economic impact on the company’s bottom line.