This section is from the book "Introduction To Economics", by Frank O'Hara. Also available from Amazon: Introduction To Economics.
Where differences exist between employers and employees which seem likely to disturb the industrial peace disinterested outsiders are often able to bring the two parties together and thus prevent an open conflict. Where outsiders use their influence to bring the parties together and to induce them to come to an agreement the action is usually spoken of as conciliation. Boards of conciliation are sometimes private and sometimes governmental. The conciliation department of the National Civic Federation is an example of the former. State boards of conciliation and arbitration in so far as they fall short of arbitration will serve as examples of the latter. Boards of arbitration as distinguished from boards of conciliation undertake not so much to induce the parties to come to an understanding themselves as to settle the question at issue and to furnish a basis of agreement for the parties. Arbitration may be either voluntary or compulsory. The Canadian Industrial Disputes Investigation Act furnishes an example of voluntary arbitration. Under this act strikes and lockouts are prohibited until the arbitration board has had time to investigate and to report upon the merits of the dispute. After the board has made its report employees have full permission to strike and employers to lockout. In the case of compulsory arbitration, as it is found, for example, in the states of Australia, the findings of the courts of arbitration are binding upon both parties.
 
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