Figures released to the Otago Daily Times by the Ministry of Business, Innovation and Employment show the Dunedin resolution rate last year was 79%, compared with 68% nationally.
The Dunedin office had 343 employment disputes referred to it in 2014-15.
Typical cases include disputes over workplace bullying, constructive dismissal, unjustified dismissal and work hours.
The ministry is planning a national shake-up of employment and tenancy mediation services, and Dunedin North MP Dr David Clark says Dunedin is one of three offices that may close.
Contacted yesterday, Dr Clark said the figures showed the southern service was a success.
''It will be saving both money and time for Dunedin businesses and employees, reducing stress, and encouraging productive enterprise.
''You couldn't hope for a better outcome than what this office is currently producing.
''It makes no sense at all to expect workers and employers to travel to Christchurch for mediation services, or to expect to wait and have expensive court processes.''
Otago Chamber of Commerce chief executive Dougal McGowan said the service benefited workers as well as businesses, helping the South's economy.
''The [resolution] numbers speak for themselves.
''It's got to be good for the workers, and it allows businesses to get a resolution.''
Asked what area the Dunedin office covered, a ministry spokeswoman said Otago, but when asked to clarify, confirmed it also covered Southland.
Mr McGowan said the lack of basic on-the-ground knowledge was concerning when major service change was being planned in Wellington.
''Don't forget your regions. As a region we supply a huge amount of the economic engine for this country. It shouldn't be underestimated.
''You've got to have your feet on the ground.
''All the regions are quite different, and it's really important to understand them when you're making these decisions.''
The ministry is yet to release details of the planned changes.
