Third-Party Intervention - Meaning & Definition

Published in Human Resources Terms by MBA Skool Team

What is Third-Party Intervention?

Third-Party Intervention is an involvement of person/team into on-going conflict of two parties like management and union to resolve conflict. Generally, third party interventions help parties analyse consequence of their action and manages/ resolve conflict in mutually beneficial way. There are various levels of third party interventions mandated by laws in employer and labour relations in collective bargaining framework.

Voluntary Arbitration:

In this first phase of third party intervention, parties mutually agree on name of person who can resolve conflict. This third party person is appointed by free will and consent of both parties to conflict. As this appointment is voluntary, it is believed that solution reached in this level stand on highest footing than solution reached in next level of conflict resolution by third party intervention.

But in case parties does reach consensus in this level then conflict resolution enters into next level.

Conciliations by third party like government appointed officer:

In conciliations, parties to conflict are brought to negotiating table. The government appointed officer act as facilitator of discussion. Officer help parties to reach amicable solution to conflict. If any solution is reached in this process, then parties sign agreement with the government appointed officer.

At times, conciliations process may not be able to reach its logical end as suggested above. In such case, conflict resolution reach next level where there is higher level of third party interventions.

Adjudication by Tribunal or labour courts:

When parties fails to reach conflict resolution in previous two levels, third levels make them compulsory to do negations in tribunal or labour court. Here parties have to accept judgement proclaimed by third party like tribunal or court.

We can see third party interventions are given in three level mechanism to solve conflict. As parties to conflict enter next level, accepting decision taken by third party becomes compulsory.

Hence, this concludes the definition of Third-Party Intervention along with its overview.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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