If management and labor have reached a bargaining deadlock, they may try to engage in
mediation. if mediation fails, what is the next possible “friendly” step?

Arbitration

The next "friendly" step that management and labor would seek is Arbitration.

The reason why "Arbitration" would be the correct answer because this would be the next reasonable step if mediation doesn't work for the management and laborers.

Arbitration is another way to solve a dispute between parties, especially if mediation doesn't work as planned.

In an arbitration, the different parties that are in it are usually not in an agreement between each other, since in mediation they would have to get into an agreement. If they're not in an agreement in the mediation, they would go to the arbitrator.

The arbitrator(s) would hear each side of the story and decide how the situation should end, meaning that the arbitrators are the ones that make the decision, not the people that are in the disagreement.

answer; analytical,creative and practical;