THE ROLE OF ARBITRATION IN COLLECTIVE LABOR DISPUTES: LEGAL APPROACHES ON RESOLVING COLLECTIVE LABOR DISPUTES IN RNM

The resolution of collective labor disputes is a basis of maintaining industrial peace and promoting fair labor relations. In North Macedonia, arbitration serves as one of the primary alternative dispute resolution mechanisms for addressing conflicts between employee unions and employers, especially when negotiation and mediation fail. This paper explores the legal framework governing arbitration in collective labor disputes, analyzing the relevant provisions of the national labor legislation, such as the Law on Labor Relations, the Law on Peaceful Settlement of Labor Disputes, and international labor standards ratified by the country. Using doctrinal legal analysis as the main research method, the paper evaluates the strengths and shortcomings of the existing arbitration system in practice. Particular attention is given to issues such as voluntariness, enforceability of arbitral awards, and the influence of political and economic pressures on the arbitration process. The paper also critically analyzes the procedural aspects, institutional support, and legal guarantees for the independence of arbitrators, as well as the conditions under which an arbitration decision becomes binding. Enormous focus is given to the challenges in implementation, including limited public awareness, lack of trust among social partners, and the need for stronger institutional capacity. Furthermore, the study uses a comparative methodology, examining arbitration systems in neighboring Balkan countries such as Kosovo, Albania, and Serbia. The comparative analysis strengthens the evaluation of North Macedonia’s system and informs policy recommendations for reform. Findings will indicate that arbitration in North Macedonia holds significant potential to serve as an effective, cost-efficient, and timely method for resolving collective labor disputes, several institutional and legal challenges persist. The paper is finalized with recommendations aimed at strengthening the arbitration system, enhancing trust among social partners, and aligning national practices with international labor standards, ultimately contributing to more stable and equitable labor relations in the country.