A review of the emergence of the neutral function in the context of collective bargaining to determine whether it might have application to higher education impasses of the l980s is outlined. A history of mediation and arbitration in labor disputes in the United States is provided. (MLW)

Following a 1980 strike by San Jose, California, public school teachers, the San Jose school board was embarrassed by a $6.2 million budget surplus into granting a teacher contract beyond its fiscal capacity. The school board's subsequent decision to declare bankruptcy established a controversial precedent for similar actions elsewhere. (JBM)