The participants in the study indicated that they preferred mediation to arbitration because they like its informality, their ability to communicate with a dispute resolution expert, the feeling that they could break down communication barriers, the chance to express their viewpoint, and their belief that mediation dealt with underlying problems. Three-quarters of all respondents felt that mediation as a step prior to arbitration was the best route to dispute resolution. In addition, the advocates all said they would use mediation to solve nearly all workplace issues on a selective basis. The success or failure of mediation depended on the degree of participant willingness to explore new ideas and the appropriate representation of all parties during the mediation process. The most often reported long-range effects resulting from mediation are establishment of positive problem-solving techniques, improvement in participants' dispute resolution skills, and direct communication between parties. The amount of time expended on mediation proceedings is less than that for arbitration, the average cost of grievance resolution is less under mediation, and overall participant satisfaction is higher. 3 references.