Dispute resolution processes

Question 1

Grievance procedures

Answer 1

Grievance procedures are a formal I set of steps which can involve management, local union representatives, and/or external advisors.
• Individuals within the workplace can use grievance procedures to address and resolve the complaint.

Question 2

Mediation

Answer 2

Mediation is a confidential discussion of issues, in the presence of a neutral third party. The third-party facilitates positive negotiations and does not normally have a say in the agreement.
• The third-party facilitates discussion to assist the parties in they dispute to work towards their own agreement but will usually not offer suggestions or solutions, preferring to allow the parties to develop the agreement in their own terms, this decision is not legally binding.

Question 3

Mediation advantages and disadvantages

Answer 3

Advantages:
• It is less expensive than more formal dispute resolution processes.
• Promote positive working relationships for the future as disputing parties reach a decision together

Disadvantages:
• This process can be a waste of time as a final decision is not always reached
• There may be an unbalanced power dynamic between employees and managers.

Question 4

Arbitration

Answer 4

Arbitration is a method of industrial dispute resolution where an independent third-party listen to both sides of the agreement, then make a decision based on these arguments, which is legally binding on both parties.
• Arbitration at the fair work commission involves a tribunal member considering the argument of each side and making a decision that resolve the dispute.
• The decision that is made is legally binding on all parties

Question 5

Arbitration advantages and disadvantages

Answer 5

Advantages:
• Guarantees that a final decision is made by the third-party, enabling the business to move forward from a dispute
• Employees are not coerced into agreeing to something they don’t want to
• The final decision is legally binding, which prevents the same dispute from occurring again between the two parties

Disadvantages:
• The business has reduced control over the final decision
• Employees have reduced control over the final decision and therefore maybe unhappy at the end of this process
• The process of hearing both sides in an external court like setting is time-consuming for both parties
• Arbitration is the most expensive dispute resolution process due to costs incurred from conducting hearings