Labor relation is one of the most basic and common social relations, and labor dispute is unavoidable in any market economy. It is of vital importance for China to establish an effective legal mechanism to coordinate labor disputes and contradictions in order to build harmonious society. This paper summarizes the present situation, characteristics and main legal causes of labor disputes in Chinese enterprises, analyzes the existing problems of the coordination mechanism for labor relations, probes into the selection of the path for present coordination mechanism of labor relations in the country, and makes some suggestions concerning their legislation.