Final answer:
The process where a neutral party makes non-binding recommendations after listening to both sides in a dispute is called mediation.
Step-by-step explanation:
The type of settlement described in the scenario, where a trained member listens to both parties and makes recommendations that are not legally binding, is referred to as mediation. This process involves a neutral third party who facilitates a conversation between the disputing parties to help them reach a voluntary agreement. It contrasts with binding arbitration, where the decision made by the arbitrator is legally binding, and differs from picketing, which is a method of protest. It is also not synonymous with a grievance, which is a formal complaint filed by an employee regarding a workplace issue.