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About Timmy Chou
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I am a experienced Mediator and a partner in a management consulting firm. As a mediator I work as a third-party neutral and specialize in partnership/shareholder disputes, management/labor issues, company culture difficulties, and family-owned business problems. I can help describe why alternative dispute resolution may be a good choice for you. As an experienced management consultant I may be able to offer creative ideas to help resolve your organizational and business problems and disputes. "If you say conflict, I say opportunity".

 
   

You are here:  Experts > Business > Corporate Law > Arbitration/Mediation > company dosnt want me back... deal before arbitration

Arbitration/Mediation - company dosnt want me back... deal before arbitration


Expert: Timmy Chou - 7/8/2006

Question
I had a union job the contract states that an employee may be on a personal medical leave up to 1 year before termination.This was me I finally got  my doctors release to full duties 4 days before my year was up and had it imediently faxed to the plant. No reply came back to me so I went there personaly on the last day that would be my 1 year deadline. I was told sorry Jim I sent your termination papers out in the mail today as I didnt think you were interested in the job anymore. She told me to file a grievance which I did now heres my question. I was told by the union pres. that the company attorny said they did not want me back and for me to submit a number of dollars that would add up to my lost wages and whatever else I felt I lost by not being employed. They would concider it before the arbitration date and possibly settle. I dont understand what the other losses are or could be that I may have encoured during this time and would like to be familarized with this subject before I reply. Can you do this or direct me to where I might learn more.

Answer
Thank you for your question!

Mediators act as neutral third parties to disputes and never "get involved" in judging the merits of conflict, but merely use special techniques to help the parties decide how to negotiate their own settlement.

The case you describe here is very typical and can be considered a "classic" office politics dispute presentation.   I am not a lawyer and cannot mediate this with you alone but I can respond to your question from my business consulting experience.

Note that this issue may have legal considerations and you may wish to consult a labor attorney in your area.

Well, the facts are that most employers look at you as a "business" problem--in other words, how much will it cost to just get rid of you versus the cost to fight you or retain you.  The cheapest option wins.  

Hence, the company is looking for a number from you that it can live with.  It knows that you have an arguable case and they are seeing that they will have to pay the cost of managing the hearing and so on and so forth--and they just might lose on procedural grounds--and they are fishing for a cheaper way out.  

The answer to this question is more complicated than I can advise, since you want to maximize your settlement as much as possible.  I would want to know about previous similar settlements, company cost estimates for alternative actions (arbitration, hearings, etc.), available union resources, etc.  It may be that the company has paid out quite a bit in previous cases--and therefore your case should merit equal treatment.  If your case is the first, you may be feeling in the dark.

Remember that some states are considered "employment at will" states, which means that without some agreement about your continuing employment or a specific contract, the company can terminate you at will for any reason.  In this case, any settlement you get is likely to be better than nothing.

As you can see, there are many factors to consider.  I would recommend you consult your union rep and any other sources you can find to get a feel for the "usual and customery" practices in cases like yours.

If the company is convinced that: 1) you are not going away; 2) you are going to raise hell and tell everyone; and 3) it will likely cost more money to deal with you than it would to settle with you; than they will make a business decision and settle generously.

These are some ideas.  Feel free to follow up with additional questions.

For your information, the pros and cons of the types of dispute resolution methods follows.

GOOD LUCK!

Arbitration, Mediation, and Litigation

Arbitration: the referral of a dispute to one or more impartial persons for final and binding determination outside of the judicial system

Benefits of Arbitration:

    Confidential, no public record
    Limited exchange of documentation, information
    Quick, don't have to wait for a court date
    Arbitrators have expertise in the subject matter and are trained in conflict resolution
    Cheaper than litigation
    Preserves business relationships

Negatives of Arbitration

    It's a compromise, no %100 winner
    Complex arbitration can be costly
    If not satisfied, may litigate the arbitration procedure
    Poor results with an unskilled arbitrator
    Both parties must agree to cooperate in the process

Mediation: the process by which parties submit their dispute to a neutral third party (the mediator) who works with the parties to reach a settlement of their dispute.

Benefits of Mediation:

    Neutral mediator can objectively suggest alternatives not considered before
    Parties are directly engaged in negotiating the settlement
    Can be quicker than litigation
    Less costly than litigation
    Preserves business relationships
    85% of American Arbitration Association cases mediated find successful solutions

Negatives of Mediation

    may not reach a binding decision
    unskilled mediator

Litigation: using the judicial system to resolve disputes

Benefits of litigation:

    a clear winner and loser
    uses a prescribed set of procedures
    more predictable outcomes
    is final

Negatives of Litigation:

    waiting for court dates can do more harm
    usually more expensive than mediation and arbitration
    part of the public record

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