(a) Upon receipt of the petition requesting arbitration, the director of conciliation may conduct or cause to be conducted an investigation to ascertain if a voluntary resolution of the contract negotiations between the parties cannot be effected. In the course of such investigation, the director of conciliation may direct the parties to conduct further negotiations, with or without mediation. In such event, no new petition requesting arbitration need be filed.

(b) If the director of conciliation concludes that a voluntary resolution of the contract negotiations between the parties cannot be effected, the director of conciliation shall convey such conclusion to the board, together with a recommendation that the dispute be referred to a public arbitration panel. The parties shall be notified, in writing, of the recommendation of the director of conciliation. The respondent shall have an opportunity to object to the recommendation, in writing, within three days after receipt of the notice of the recommendation.

(c) If the board so determines, it shall certify that a voluntary resolution of the contract negotiations between the parties cannot be effected and shall refer the dispute to the designated public arbitration panel, subject, however, to the conditions set forth in section 205.17(d) of this Part. In reaching its determination, the board may conduct or direct such additional investigation, including hearings, as it deems advisable and proper, and may direct the parties to conduct further negotiations, with or without mediation.