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CONFLICT MANAGEMENT SYSTEM DESIGN

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... the date a lawsuit is filed and the commencement of a civil trial is 2.5 years. ... 600-$1000 per day. LEGAL CONCERNS ASSOCIATED WITH MANDATORY ARBITRATION ... – PowerPoint PPT presentation

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Title: CONFLICT MANAGEMENT SYSTEM DESIGN


1
CONFLICT MANAGEMENT SYSTEM DESIGN
2
A 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.

8
A 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.

9
Among 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.

10
WHY ADOPT A CONFLICT MANAGEMENT SYSTEM?
  • Cost reduction
  • Quicker resolution at an earlier stage
  • Privacy
  • An interest based solution
  • Underlying issues can be addressed

11
WHY ADOPT A CONFLICT MANAGEMENT SYSTEM?
  • Increased communication and trust
  • Fewer charges are filed with government agencies
  • Diversity
  • Cultural change is fostered.

12
TYPES OF PROGRAMS
  • Ad hoc
  • Formal policy

13
EXAMPLES/COMPONENTS
  • A conflict management person, committee or
    department.

14
EXAMPLES/COMPONENTS
  • Ombudsperson.

15
EXAMPLES/COMPONENTS
  • Voluntary or mandatory policies on mediation or
    arbitration.

16
EXAMPLES/COMPONENTS
  • Panels of external or internal third party
    neutrals.

17
EXAMPLES/COMPONENTS
  • Peer review panel.

18
EXAMPLES/COMPONENTS
  • Neutral fact-finding providing
  • a nonbinding report.

19
THE PLAN SHOULD ALSO INCLUDE
  • Policies for cost sharing with employees.
  • Conflict management training for all employees.
  • A system for feedback.

20
DESIGNING A PROGRAM
  • The best programs probably include a
  • combination of components.

21
DESIGNING A PROGRAM
  • BEFORE DESIGNING A PROGRAM
  • Determine your needs.

22
DETERMINE 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?

23
DESIGNING 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

24
STEPS FOR DESIGNING A PROGRAM
  • Form a committee that is representative of the
    workforce.
  • Identify specific problems and needs.
  • Design the program.

25
STEPS FOR DESIGNING A PROGRAM
  • Try a pilot program.
  • Evaluate the results.
  • Publicize the program and educate the workforce
    about it.

26
STEPS FOR DESIGNING A PROGRAM
  • Implement the program.
  • Collect feedback, evaluate the information, and
    make necessary revisions to the program.

27
  • IS
  • YOUR
  • PROGRAM
  • FAIR?

28
LEGAL CONCERNS ASSOCIATED WITH MANDATORY
ARBITRATION
  • Avoidance of high costs

29
Arbitration 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

33
LEGAL CONCERNS ASSOCIATED WITH MANDATORY
ARBITRATION
  • Lack of participation in selecting the neutral.
  • Confidentiality.
  • Elimination of remedies.

34
LEGAL CONCERNS ASSOCIATED WITH MANDATORY
ARBITRATION
  • Adequate notice.
  • Procedural limitations.
  • Curbs on discovery
  • Time limits for the hearing.

35
CONSIDERATIONS
  • 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?

36
CONSIDERATIONS
  • 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.
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