Mediation or Arbitration

Contrary to Maslows Hierarchy of Needs, which lists love and belonging as a paramount individual need, in the work place, people are often alienated and deprived of what they feel that they merit. Due to this alienation sentiment, one of your employees wishes to quit and sue your company for discrimination based on national origins. As a manager you are trying to use all available resources to successfully negotiate with the employee, but the negotiations fail. Following this failure of the negotiation, the employee hires a lawyer, yet the lawyer recommends the employee to use the Alternative Dispute Resolution track simply because, due to raising anti-immigrant attitudes in the area, the lawyer doesnt think that the case may be strong enough for the employee to win the case in the court.  Since negotiations failed, the only remaining alternatives are either mediation or arbitration. You are given an opportunity to choose between mediation and arbitration. Considering Maslows Hierarchy of Needs, what would you choose and why? Mediation or Arbitration