Conflict is an inevitable aspect of human resource management, particularly in large State-Owned Enterprises (SOEs) such as Zambia’s electricity utility company, ZESCO. Managers are often challenged to resolve disputes in ways that balance fairness and organizational efficiency. Traditional approaches management decisions and trade union judgments have proven limited in fostering win-win outcomes. This study explores the potential of arbitration as an alternative dispute resolution (ADR) mechanism within ZESCO. Guided by a positivist research paradigm, the study employs qualitative, quantitative, and case study methods, with findings validated through triangulation. Results reveal that while arbitration offers a more equitable process, its high costs hinder accessibility for employees, limiting its practical adoption. The study contributes to business and management scholarship by demonstrating how legal concepts can be applied to workplace conflict resolution and by addressing a critical gap in understanding conflict management strategies within SOEs.