Labor conflict resolution machineries have concentrated on collective dispute settlement in Japan. Grievance procedures stipulated in labor contracts have not been working effectively. The center of gravity of labor-management relations has shifted from collective bargaining with labor unions to individual labor contracts with individual workers both in the unorganized sector and the non-union members within the organized sector. Similarities and differences between Japan and the United States are examined. Vague demarcation between rights and interest disputes as well as between collective and individual disputes characterize the dispute settlement machineries in Japan.