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Abstract This article examines the introduction of mediation in the French industrial relations context, as illustrated by the case of the SFR Cegetel collective agreement on social dialogue, which was signed in June 2002. This article provides an overview of relevant French legislation and explores why mediation is used so infrequently in France to settle labor conflicts, examines the growing interest in mediation in France as exemplified in the implementation of alternative dispute resolution (ADR) programs in several firms, and analyzes the barriers and incentives to mediation as well as the impact of internal mediation on the relations between management and employees. We conclude that while inherited customs and lack of information curtail the use of mediation, disputants increasingly favor mediation as an option when they wish to gain time or when the situation is filled with especially acute open conflict. In addition, we conclude that the introduction of mediation favors a more participatory style of management, improves relationships between management and employees, and induces a better social dialogue within the firm.
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