Mandatory conciliation, regulated under Law 14.786 in Argentina, is invoked in situations where labor disputes escalate and threaten social peace or essential services. In the specific case of Fate, a company planning to lay off nearly 1,000 workers, labor authorities have imposed this measure to initiate a forced negotiation period between the company and its employees.

This legal process mandates a 'pause' where both parties must revert to the conditions before the conflict began. For the company, this means it's required to rescind layoffs or suspensions, allowing employees to continue their work without disruption. Conversely, employees and their unions must refrain from any forms of protest, such as strikes or plant blockades, during the conciliation period.

The implications of this measure are significant. It not only aims to resolve the immediate labor dispute but also seeks to stabilize the broader labor market and maintain essential services. The effectiveness of mandatory conciliation in facilitating negotiations can vary greatly, and its enforcement reflects the government's active role in mediating labor relations in Argentina.