Title: CONFLICT MANAGEMENT SYSTEM DESIGN
1CONFLICT MANAGEMENT SYSTEM DESIGN
2A 1990 survey revealed that
- 62 of respondents indicated they would be more
willing to take legal action regarding employment
discrimination than they had been 5 years before. - 78 believed that some, most or all employers
engaged in some kind of discrimination in hiring
or promotion.
3 Between 1970
and 1989
- Federal Civil caseload increased by 125 BUT
- Employment Discrimination case filings increased
by 2,166 -
4 Between 1991
and 1993.
- The EEOC reported
- a 22 increase in charges of employment
discrimination.
5 In SEXUAL
HARASSMENT CASES
Between 1992
and 1993.
- Judge and jury awards
- increased 98 to 25.2 million.
6 In
SEXUAL HARASSMENT
CASES
Between 1992 and 1998,
- Annual monetary benefits increased
- from 12.7 million to 34.5 million
7 TIME SPENT
- It takes an average of 2 years for the EEOC to
investigate a claim. - The median time between the date a lawsuit is
filed and the commencement of a civil trial is
2.5 years. -
- Benefits from cases
- handled by the EEOC increased from 12.7 million
to 34.5 million. -
8A 1997 Survey of over 530 corporations in the
Fortune 1000 category revealed
- 90 view ADR as a critical cost-control
technique. - 88 reported using mediation in the previous 3
years - 23 used grievance procedures for nonunion
employment dispute resolution.
9Among corporations that developed collaborative
conflict management systems
- Brown and Root reported an 80 reduction in
outside litigation costs. - NCR reported a 50 reduction in litigation costs
and - a drop of pending lawsuits from 263 in 1984 to
28 in 1993.
10WHY ADOPT A CONFLICT MANAGEMENT SYSTEM?
- Cost reduction
- Quicker resolution at an earlier stage
- Privacy
- An interest based solution
- Underlying issues can be addressed
11WHY ADOPT A CONFLICT MANAGEMENT SYSTEM?
- Increased communication and trust
- Fewer charges are filed with government agencies
- Diversity
- Cultural change is fostered.
12TYPES OF PROGRAMS
13EXAMPLES/COMPONENTS
- A conflict management person, committee or
department.
14EXAMPLES/COMPONENTS
15EXAMPLES/COMPONENTS
- Voluntary or mandatory policies on mediation or
arbitration.
16EXAMPLES/COMPONENTS
- Panels of external or internal third party
neutrals.
17EXAMPLES/COMPONENTS
18EXAMPLES/COMPONENTS
- Neutral fact-finding providing
- a nonbinding report.
19THE PLAN SHOULD ALSO INCLUDE
- Policies for cost sharing with employees.
- Conflict management training for all employees.
- A system for feedback.
20DESIGNING A PROGRAM
- The best programs probably include a
- combination of components.
21DESIGNING A PROGRAM
- BEFORE DESIGNING A PROGRAM
- Determine your needs.
22DETERMINE YOUR NEEDS
- Is your organization large enough to justify
creating a system? - Will this conflict management system fit with the
organizations culture? - Does the level of conflict justify a conflict
management system?
23DESIGNING A PROGRAM
- AFTER DESIGNING A PROGRAM AND AGAIN AFTER ITS
IMPLEMENTATION - Determine if the plan is cost effective.
- Consider the price for
- Developing
- Implementing
- Maintaining
24STEPS FOR DESIGNING A PROGRAM
- Form a committee that is representative of the
workforce. - Identify specific problems and needs.
- Design the program.
25STEPS FOR DESIGNING A PROGRAM
- Try a pilot program.
- Evaluate the results.
- Publicize the program and educate the workforce
about it.
26STEPS FOR DESIGNING A PROGRAM
- Implement the program.
- Collect feedback, evaluate the information, and
make necessary revisions to the program.
27 28LEGAL CONCERNS ASSOCIATED WITH MANDATORY
ARBITRATION
29Arbitration can save parties 70-80 of the cost
of litigating these cases. Ed Anderson,
National Arbitration ForumArbitration still
costs less than litigation. The Wall Street
Journal
30 A four-year survey of
litigation cost versus
arbitration/mediation
cost showed
- Arbitration cost was half the cost of traditional
litigation. - Mediation was one-third the cost of traditional
litigation
31 COST OF LITIGATION
- Court Filing Fees 100-250
- Cost of Judges Services 0
32 COST OF ARBITRATION
- AAA Fees
- Employer-promulgated plans 500
- Individually negotiated agreement
- 500 for claims up to 10,000
- Ranging to several thousand dollars for claims in
the millions - Cost of Arbitrators Services
- 150-300 per hour or
- 600-1000 per day
33LEGAL CONCERNS ASSOCIATED WITH MANDATORY
ARBITRATION
- Lack of participation in selecting the neutral.
- Confidentiality.
- Elimination of remedies.
34LEGAL CONCERNS ASSOCIATED WITH MANDATORY
ARBITRATION
- Adequate notice.
- Procedural limitations.
- Curbs on discovery
- Time limits for the hearing.
35CONSIDERATIONS
- Should agreement with the policy be a condition
of employment? - Should the decision to mediate/arbitrate be made
only after a dispute arises? - Should a new program apply only to new employees?
36CONSIDERATIONS
- What effect will the plan have on morale?
- If plan is perceived as being fair, will
complaints increase?
37 Keep in mind..
- If your plan is challenged in court, for whatever
reason, there may be no cost saving.
38 A California Court
recently observed
- We spend too much time trying to make sense
out of arbitration agreements
39 A California Court
recently observed
- Oftentimes the remedy is worse than the
disease.