The Iowa Public Employment Relations Act has provided for final-offer arbitration in interest disputes since 1974. The arbitrator may choose, on an issue-by-issue basis, either the employer's or the union's final offer or the recommendation of a fact-finder. The article examines the degree to which fact-finding recommendations are endorsed by arbitrators and the role of the fact-finding report in moving the parties closer to settlement. The author concludes that arbitrators do have a strong tendency to accept fact-finders' recommendations and that fact-finding reports encourage both unilateral and bilateral movement in cases where the fact-finder differs from the two parties. Where the fact-finder is in agreement with one of the parties, however, there is limited movement on the part of the other.