This section is discussing mediation and arbitration as the means of settling disputes. (Page 14, sub-factor 7.9 http://foldvary.net/econ200/measuring.pdf ).
As such, these are services which parties use, of their own free will, to settle a dispute. Therefore, because the parties must have a choice as to whether or not to use those services, there can be no binding obligation upon them to do so. (i.e. They cannot be bound to take part in a system, or mechanism, which is meant to be voluntary.)
In the UK the most well-known organisation dealing with mediation, arbitration and dispute resolution is ACAS.
Here is an interesting video from their website which explains the difference between mediation, conciliation and arbitration.
Here is another of their videos which talks about workplace disputes and their resolution.