When workplace disputes arise, workers and employers generally have three options: 1. Negotiate an outcome between themselves; 2. Engage a mediator help them to reach their own agreement; or 3. Have the matter adjudicated by an arbritration body (such as the Fair Work Commission) or a court.
The first option is generally going to be the cheapest and most convenient. Although parties should be careful about any real or perceived imbalances of power that could undermine the agreement.
The court option has benefits too. It can provide a result that is binding on both parties. This provides a high level of certainty and closure, however there are downsides.
Court processes are often public, and the zero-sum, adversarial process can divide loyalties, burn bridges and erode goodwill between employers and staff.
On the other hand, mediation can give you the best of both worlds. The parties retain their autonomy. The discussions will be private and confidential. Each party has a genuine shot at getting some of what they want, and it will cost a fraction of a fully litigated court case.