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HOW TO...
resolve (or
avoid) disputes
by Jodie Warren
Whether it is a compensation disagreement,
sexual harassment allegation, or even something as petty as "office
envy," disputes in the workplace are commonplace. Often, disputes
can be settled without bringing in third parties. But failing to
take disputes seriously could be a costly mistake, particularly
if disgruntled employees decides to hire a lawyer and settle the
matter in court. This is often why disputes are settled on courtroom
steps, with the threat of legal costs having been used effectively
as a bargaining chip.
An alternative to litigation is alternative
dispute resolution, using an arbitrator or mediator. Does your situation
require mediation or arbitration? It's a judgment call, said Matti
Saar, a director of the B.C. Arbitration and Mediation Institute.
"You can try to resolve the issue between the parties yourself,
but you have to determine the degree of antagonism," he said.
If there is any money at stake -- even
as little as $5,000 -- arbitration or mediation is a sensible step.
"Obviously, if you're dealing with a $37 issue, it makes no sense
to use arbitration or mediation," said Saar. He added that arbitration
and mediation services can be tailored to your budget; you can decide
how much money or time you want to spend attempting to resolve your
workplace dispute.
When considering arbitration or mediation
to resolve a dispute in your company, it's important to first understand
the fundamental differences between the two. By using arbitration,
you are guaranteed a result, similar to a decision reached in a
courtroom. Arbitrators listen to the arguments presented by both
parties, and then hand down their decisions. These decisions are
not to be taken lightly: in B.C., there is a commercial arbitration
statute that reinforces the decisions of arbitrators.
Mediation, on the other hand, does not
necessarily guarantee a result or a decision, but instead seeks
to bring the parties to a resolution or agreement. The mediator
is a neutral party who helps those involved in a dispute reach a
mutual understanding. Rather than focusing on a decision, mediation
focuses on resolving the differences of opinions. If this process
fails, arbitration may be the next step.
If you have deemed it appropriate to pursue
arbitration or mediation, Saar recommends taking a few steps before
bringing in the appointed person. First, it is a good idea to have
an arbitration or mediation clause in any employee contracts. That
ensures that in the event of a dispute, the employee knows that
a resolution may involve arbitration or mediation. Second, dedicate
one person in your staff to research appropriate people for the
task and to get the ball rolling. Many arbitrators or mediators
specialize in particular industries or fields, such as real estate
or employee practices.
The advantages of alternative dispute
resolution are many, notes Saar. It can be tailored to your company
or situation, can remain a private matter, and is more cost-effective
than pursuing resolution in a courtroom. Of course, there are some
issues that still have to be pursued through more traditional avenues.
These tips can help prevent disputes from
arising in the first place:
Be
clear about the goals and objectives for your business -- have a
plan.
Involve
others in the planning, to ensure "buy-in."
Know
your place on the team. What will each person do to ensure that
the business plan is carried out? The roles should make optimal
use of each individual's talents and skills, and should be flexible
enough to encourage growth and creativity.
Be
fair and consistent in your treatment of management and staff. Reward
behaviour that enhances the good of the team. Provide guidance and
encouragement.
Encourage
an open atmosphere. Are employees aware of the risks and opportunities
facing the business?
Provide
a physical infrastructure that helps employees accomplish tasks.
Put
policies, goals and objectives, for the firm and the individual,
in writing, and review them periodically.
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