AbstractConventional wisdom maintains that industrial turmoil accounts largely for the enactment of the compulsory arbitration law, the Conciliation and Arbitration Act 1904 and the Trade Disputes (Emergency Provisions) Decree 1968, in Australia and Nigeria respectively. Considering this view as patently inadequate, the paper investigates a broader background of this law in both countries and finds more critical factors at work. Important as the industrial turmoil was, this factor turned out to be merely a symptom of a more fundamental phenomenon, namely the lack of an institutionalized consensual collective bargaining system, arising largely from a similar form of interaction between the state and industrial relations in both countries.