Is mediation the preferred procedure in labour dispute resolution systems? Evidence from employer–employee matched data in China

Abstract

This study explores procedural preferences in the historical development of labour dispute resolution systems at the national level and employees’ pre-experience preference to resolve disputes at the individual level. Drawing on two datasets – one from national public statistics and one from China’s employer–employee matched data – we find that mediation has fluctuated in its use and efficacy, and it has re-emerged as an important method to stabilize labour relations. Employees choose internal mediation only if they feel that the enterprise’s mediation committee is selected fairly. Organizational structure factors, such as the enterprise’s size and the effectiveness of the Staff and Workers Representative Congress, moderate the relationship between employees’ perceptions of justice and procedural preferences. This study contributes to the dispute resolution literature by highlighting the interactions between individual perceptions of justice and organizational factors of procedural preference. Additionally, practical implications are offered to aid in the design of dispute resolution systems and improve organizational justice.