HOME       NEWS & VIEWS       MEETINGS       COMMITTEE       LAW REPORTS       CONTACT      LONDON INSTITUTE


Previous Events

NextPrevious

Disputes in Employments - Avoidance, Settlement and Resolution.
Sylvia Cashman
15 November 2005


As members of the Institute, we have all taken the courses and have passed the exams so we think we know all about disputes and dispute resolution. The two parties come before us, set out their cases and we decide on (or negotiate if we are mediators) the outcome in a quiet and rational manner.

In her talk to the Branch on 15 November 2005, Sylvia Cashman of BAA plc introduced us to a new and more uncertain set of problems for the dispute resolver. Sylvia is the Industrial Relations Manager for the Heathrow Terminal 5 development and as such is responsible for maintaining harmony across the site amongst contractor's staff not employed by BAA.

To our ordered minds used as they are to dealing with well defined commercial disputes, the field of industrial relations looks much like a quagmire liberally strewn with mines. The problems appear unclear, the parties involved are often numerous, the complaints may be personal and the results are rarely if ever binding.

In a presentation generously illustrated with examples, certain fundamental points came through clearly.

Avoidance. Quite simply, avoid disputes wherever possible. This seems quite obvious but to do this, you need to be able to see them coming. So, in the industrial relations field, the manager role requires:

  • Potential areas of conflict and dispute to be identified.

  • Prepare a plan for dealing with the conflict.

  • Be clear on what you are expecting others to do.

  • Lead by example and honour your commitments.

  • Build good relations with all sides.

The critical point is do not leave issues to fester; deal with the problem as soon as possible otherwise it will only get worse.

Resolution. All familiar ADR processes used although possibly in an unfamiliar manner.

  • Mediation: the most favoured since it enables the parties to find their own solutions whilst maintaining the employment relationships. More likely to be successful if used early on in the issue.

  • Conciliation: used to build a common ground between the parties, explore the issues and to negotiate a solution.

  • Arbitration: independent person to give a decision which may be binding or non-binding. Issue out of the hands of the parties and the decision may be unpredictable and, in reality, unacceptable to one party. Very difficult to make an unpalatable decision binding on employees.

Settlement. Whatever the solution, it must bring a closure to the issue. The settlement should:

  • Be communicated to the parties quickly.

  • Be clearly explained / understood by all.

  • Be specific in its terms, including when matters should start or stop.

  • Be prepared for external scrutiny.

  • Include for any changes in procedure or training necessary to avoid further problems.

  • Allow return to business as soon as possible.

  • Include any improvements that can be made in the light of experience.

It was accepted that industrial relations present different challenges to those normally faced in commercial disputes. Whilst generally best avoided, industrial conflicts can be beneficial in generally clearing the air and in presenting positive opportunities for change if skilfully and promptly handled. However, these differences from commercial disputes cast an interesting light on our practices in both dispute avoidance and dispute resolution and emphasised the common threads that:

  • Disputes are best avoided where possible.

  • Difficult situations can be brought to a beneficial conclusion if handled promptly.

  • Poor dispute management suggests more fundamental problems.

  • Disputes are expensive.

In all, this was therefore a valuable evening for everyone regardless of their discipline and viewpoint and one for which we must thank Sylvia Cashman.

Report by James Mumford

Return to Index