Nowadays, arbitration and conciliation of labor disputes have been applauded because the expertise of specialized arbitration and conciliation tribunals is utilized which results in the saving of time, reduction of expenses and mitigating the rigors of technical procedures of courts which are not well adapted to the peculiar needs of labor-management relations. The Ethiopian legal system has adopted resolution of labor disputes by alternative means since the early 1960s. Arbitration and conciliation of labor disputes have remained part and parcel of the Ethiopian labor laws although the practice is not well developed. However, given that Ethiopian courts are poorly organized and inadequately staffed, we need to put into practice these alternative forums of labor dispute resolution. To do this, conducting research is called for to explore and examine the available rules and procedures in relation to arbitration and conciliation of labor disputes in Ethiopia. It is for these reasons that the author embarked on studying arbitration and conciliation of labor disputes in Ethiopia.