Business success rests on constructive employer–employee relations. However, the role of negotiation in maintaining workplace harmony is regularly misjudged. Ineffective negotiation may cause financial and relational strain, whereas effective commitment enhances organisational resilience. This study analyses weaknesses in industrial dispute negotiations in Malaysia, focusing on Industrial Court cases from 2023 to 2025. Existing scholarship delivers limited empirical evidence on how negotiation procedures operate in practice and why they often fail to prevent escalation. Guided by three research questions— (1) to determine the quality of negotiation efforts undertaken in pre-litigation; (2) to analyse the nature of these negotiation attempts; and (3) to identify recurring weaknesses in organisational negotiation practices—the study employs a qualitative case study approach. Court awards, grievance procedures, and conciliation records were analysed to identify recurring patterns. Findings mainly indicate that although negotiation is commonly initiated, it is frequently undermined by procedural lapses, insufficient transparency, and inconsistent documentation. These weaknesses are most apparent when employers bypass unions or delay formal grievance mechanisms. The study contributes to business and management scholarship by illustrating that ineffective negotiation not only increases disputes but also erodes trust, productivity, and organisational reputation. The study also provides a framework for improving negotiation in the workplace.