How is Arbitration different from Conciliation? |ARBITRATION Vs. CONCILIATION

Difference between Arbitration and Conciliation
Meaning of Arbitration.
Meaning of Conciliation.
Definition of Arbitration
Arbitration is a powerful means of resolving disputes between the organisation and its employees. It is a process in which an independent third party analyses the bargaining situation, listens to both parties and collects necessary data and make recommendations which are binding on the parties concerned.
Definition of Conciliation
The process wherein the representative of both employer and employees are brought together in front of a third party so as to persuade them to arrive at a decision by agreement between them. Any party can request the other, for appointing the conciliation officer. The conciliation officer or conciliator can be an individual or a group of people. There will be no conciliation if anyone of the two parties rejects the offer to conciliate.
The difference between arbitration and conciliation can be drawn clearly on the following grounds:
1. Arbitration refers to a method of resolving industrial disputes, wherein the management and the labour present their respective positions to the neutral third party, who takes a decision and imposes it. Conciliation is a method of resolving the dispute, wherein an independent person, who meet the parties jointly and severally and helps them to arrive at negotiated settlement or resolve their differences.
2. The decision made by the arbitrator is acceptable to the parties concerned. On the other hand, the conciliator does not have the right to enforce his decision.
3. Arbitration requires a prior agreement between parties known as arbitration agreement, which must be in writing. As against this, the process of conciliation doesn’t require any prior agreement.
4. Arbitration is available for the current and future disputes whereas the conciliation can be adopted for existing disputes only.
5. Arbitration is like a courtroom proceeding, wherein witnesses, evidence, cross-examination, transcripts and legal counsel are used. On the contrary, Conciliation is an informal way of resolving disputes between the management and labour.
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