Question. Explain the mechanism of conciliation machinery and
its role in the settlement of industrial dispute.
ANS. Conciliation is a dispute resolution mechanism which is
broadly and globally to settle disputes. It is referred to in case
of the desire to reach an amicable way of resolving disputes for
example, business disputes. Dispute resolution mechanisms
that are used in the international sphere can be classified into
two categories, adjudicative and diplomatic resolution
mechanisms. Adjudicative mechanisms are those involving a
neutral third party who resolves the issue by rendering a
decision that is binding on the parties, for example, judicial
settlement and arbitration. In contrast, the diplomatic
mechanisms of dispute resolution, some of which involve a
third party, result in outcomes that are always non-binding in
effect. Diplomatic mechanisms of settlement can be divided
into two branches; on the one hand those that involve only the
parties of the disputes themselves, for example, negotiations
and consultations and those that engage a third party in the
process on the behest of or with the consent of the disputants,
for example, conciliation mediation, good offices and inquiry.
This paper focuses on conciliation as a diplomatic mechanism
of foreign direct investment dispute settlement. First, it sheds
light on the nature and elements of conciliation compared to
other mechanisms that engage a third party, mainly mediation.
Second, it identifies the major advantages of conciliation. Third,
it identifies cautions that accompany resorting to conciliation as
a dispute resolution mechanism. Fourth, it identifies some
concluding remarks.
Conciliation is a Peaceful Means to Settle Disputes:
Conciliation is a peaceful means to settle disputes arising
between the parties, and remove the problems that prevent the
execution and completion of their relationships. Conciliation is
not considered a legal or judicial means adopted to resolve
disputes arising between parties; rather it is the most feasible
mechanism by which decision is made through the parties'
agreement and consent. Since conciliation aims, like all
peaceful mechanisms, to settle existing disputes, it is also
distinguished by being a primarily peaceful mechanism to
