Last year saw the lowest number of days lost to industrial unrest since 1970, according to the Labour Relations Commission.
Over 80% of disputes referred to the conciliation service in 2002 were settled, according to the LRC's Annual Report published today.
Welcoming the report, Tanaiste Mary Harney said that one of the key elements of Ireland's economic success has been a stable industrials relations environment and the availability of an effective dispute resolution mechanism when needed.
Harney praised the role played by LRC Chief Executive Kieran Mulvey and outgoing Chairman Caitriona Murphy and called for others to follow the example of the LRC.
Ms Harney said: "Those involved in industrial relations must endeavor to increase the number of disputes resolved at local level and to change the culture of third-party dependency.
"Working in partnership has and will continue to serve us well."
A new division to handle costly and time consuming public service disputes is to be established according to Chief Executive, Kieran Mulvey.
He also warned that Irish industry faced increased competition from Eastern European states with a lower-cost base.