Answer to Question #183849 in Economics of Enterprise for John

Question

Comparing mediation and arbitration which method do you think is best for setting labor disputes

Answer 1

ANSWER

Mediation is where there is any third party that assists other two parties thus preventing the occurrence of conflicts, helping them to get appropriate solutions to their conflict while Arbitration is a type of conflict resolution whereby there is a neutral third party who listens to both the parties and gathers information and then gives out appropriate recommendations based on his/her knowledge that is binding on the parties.

Therefore, from the definition above arbitration is the best method of settling labor disputes compared to mediation because arbitration is a more formal process for resolving disputes. Whereby he/she has basic knowledge in the area of Labour disputes, Unlike a mediator.