Connection Between Industry Association Mediation and Arbitration in the Chinese Labour Dispute

Abstract

The effective resolution of labour disputes is essential for maintaining harmonious labour relations, and industry associations play a crucial role in mediation by offering a faster, more cost-effective alternative to arbitration while improving interpersonal and social relationships. However, a key limitation is that mediation agreements reached through industry associations are not legally enforceable. In China, where labour arbitration is a mandatory pre-litigation procedure, integrating industry association mediation with arbitration is necessary to enhance dispute resolution. Successful mediation agreements can gain legal enforceability after arbitration review, while unsuccessful cases should transition directly to arbitration to prevent delays. This study employs a qualitative research approach to explore strategies for strengthening the connection between industry association mediation and arbitration, which can improve mediation effectiveness, expedite dispute resolution, and foster stable labour-management relations. The study is structured as follows: an overview of the development of industry association mediation organizations, a definition of their mediation role, an analysis of their advantages through case studies and comparative methods, an examination of existing challenges, and recommendations for improvement. Strengthening the integration between mediation and arbitration can address the enforcement limitations of mediation while maintaining its efficiency, ensuring that disputes are resolved fairly and promptly. By enhancing the execution of mediation agreements and facilitating swift arbitration when needed, this study contributes to the diversification and efficiency of labour dispute resolution mechanisms in China, ultimately promoting a more harmonious and effective labour-management framework.