The author highlights the different approaches to incentive taken by management and labor. He discusses the “tests of fairness” for incentive standards, and reviews them from management’s perspective. Arbitrator Davis agrees that it is appropriate to arbitrate incentive disputes, and points to increased management acceptance of such arbitration. He notes, however, that unions often do not chose arbitrators with sufficient technical knowledge and experience to competently evaluate the parties’ respective positions, viewing such arbitrators as “management-oriented.”