What method of alternative dispute resolution is being used by a nonunion company that involves an independent third party?

The method being described is arbitration, which involves an independent third party to help resolve disputes. In arbitration, the third party—known as the arbitrator—listens to both sides of the dispute and makes a binding decision. This approach is particularly useful for companies seeking to resolve conflicts outside the traditional court system, as it tends to be more confidential and can be less time-consuming than litigation.

Mediation, while also involving an independent third party, differs from arbitration in that the mediator facilitates discussion between the parties to help them reach a mutual agreement, without the authority to make a binding decision. Negotiation involves the parties themselves discussing the dispute to reach a settlement without third-party involvement, and litigation is the formal process in which a case is taken to court for resolution, which is often public and can be lengthy and expensive. Thus, the distinct feature of arbitration is that it culminates in a binding decision made by an independent entity, making it the correct method described in this scenario.