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What are the key differences between conciliation, mediation, and arbitration?

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  What are the key differences between conciliation, mediation, and arbitration? Arbitration Neutral third party ( arbitrator ) hears both sides and makes a legally binding decision . Often used in construction disputes. Mediation A mediator facilitates negotiation between parties to help them reach a mutual agreement . The mediator does not impose a decision. Conciliation Similar to mediation, but the conciliator may propose solutions to help parties settle. Common in labor disputes.