A Comparative Study of Labor-Management Dispute Resolution Mechanisms within the Legal Systems of Germany and the United States

Document Type : Original Article

Authors

1 Assistant Professor, Department of Public Law, Faculty of Law and Political Science, Allameh Tabataba'i University, Tehran, Iran.

2 PhD Student of Public Law, Faculty of Law and Political Science, Allameh Tabataba'i University, Tehran, Iran.

10.22091/cpl.2025.14632.1083

Abstract

Received: 24/08/2025 Revised: 27/10/2025
Accepted: 21/11/2025
Published online: 22/11/2025




This article examines the diverse institutional frameworks and legal foundations of labor dispute resolution within the labor law systems of Germany and the United States, highlighting key mechanisms such as mediation, conciliation, arbitration, labor courts, administrative bodies, and informal adjudicative processes. This study contrasts the German legal system - distinguished by works councils, conciliation committees, and specialized labor courts - with the more decentralized and privatized approach of the United States, characterized by voluntary mediation, mandatory arbitration, and limited access to formal judicial remedies. This analysis emphasizes how institutional design reflects broader socio-legal values, such as the German system's emphasis on social partnership and codetermination versus the United States' focus on individualism and contractual autonomy. In this context, the ascendancy of mandatory arbitration in the U.S. labor system has raised serious concerns regarding procedural fairness, transparency, and substantive access to justice. This article further investigates the role of administrative agencies and the burgeoning significance of Alternative Dispute Resolution (ADR) mechanisms, concluding that while both systems aim to resolve labor disputes expeditiously, the German model offers more balanced and inclusive processes, whereas the U.S. framework risks exacerbating the power imbalance between employees and employers. Consequently, this comparative study highlights not only the disparities in institutional architecture but also the underlying theoretical paradigms. The article suggests that within a globalized labor market, incorporating elements of the German approach - such as accessible labor courts and labor participation mechanisms - could ameliorate certain deficiencies inherent in the American system.

Keywords

Main Subjects

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Journal of Comparative Public Law
Volume 2, Issue 3 - Serial Number 7
November 2025
Pages 134-160

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