Labor relation is a fundamental relationship of human society and harmonious labor relations is an essential element of a harmonious society. China's current rapid growth in labor dispute cases has been a serious threat to economic development and social stability. For this reason, on the one hand we need introduce human capital theory, stakeholder theory, incomplete contract theory and other advanced theoretical and practical experience in reforming harmonious labor relations; on the other hand, we must face up to the defects of China's labor dispute mechanism, find out the crux of the problem and analysis the labor disputes handling mechanisms of foreign countries Germany, the United States such as Japanese, England, France, and so on, to find out the experiences we can draw lessons from. We should pay more attention to consultation and avoid confrontation, and combine conciliation, mediation, arbitration, litigation, the focus is to establish a consultative mechanism center around conciliation and mediation.
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