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compulsory arbitration
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compulsory arbitration

negotiation
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Compulsory arbitration is a non-judicial method for resolving disputes where a neutral third party, the arbitrator, makes a binding decision. This differs from mediation, where recommendations are offered. Compulsory arbitration is most commonly used in commercial disputes and labor relations.1

In labor disputes, compulsory arbitration can be a last resort after other negotiation methods have failed. It can involve arbitration of rights (interpreting an existing contract) or arbitration of interests (negotiating a new contract). Some systems make arbitration compulsory for employers but voluntary for unions, while others mandate union membership.12

While arbitration can offer faster resolutions than court proceedings and provides privacy, disadvantages include a lack of published decisions, which can make outcomes less predictable. International arbitration also faces challenges in enforcement, though treaties aim to facilitate this.1

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2 Britannica Sources
  1. arbitration
  2. organized labour - Compulsory arbitration and union growth in Australasia

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