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A 4-phase theory of industrial relations evolution is formulated so as to obtain a deeper understanding of contemporary developments in industrial relations, as well as to situate the pattern of Greek industrial relations prior to 1990. Greece initiated a "U-turn" in its industrial relations system in the 1990s. The institutionalization of free collective bargaining, 3rd-party intervention on a voluntary basis, and the establishment of the Organization of Mediation and Arbitration (OMED) form the core of the new status quo in employee-employer relations in Greece. A general evaluation of the 3 years' experience of OMED indicates that a gradual, positive change in the atmosphere of the Greek industrial relations appears to have taken place. However, the transition from a long-standing low-trust and authoritarian industrial relations pattern requires the diffusion of new knowledge and experience, changes in cultures and support from multiple sources.