The Arbitration Process

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Get his agreement to the interviewer’s re-statement to ensure that both parties are in exact accord as to what comprises the grievance.

Correct any inaccuracies in the subordinate’s grievance

Obtain further facts from subordinates if necessary, to ensure that adequate information is available for making a decision.

Keep tempers under control by avoiding heated arguments. Try to maintain a cordial atmosphere throughout.

Stage 3- Act

Give the decisions with reasons, or, if any reason that are unable to do so, tell the person why it is not in a position to give an on-the-spot decision.

Indicate what it is intend to do without compromising by making promises that unable to keep.

- Establish tentative solutions to the grievance.

It is better to come up with solutions with the involvement of Mike. By studying the case study it can be understood that it was an unfair dismissal because of the following points.

Mike was not given a chance to explain his ideas.

The supervisor had a personnel problem with Mike as he was a poor worker.

When solving grievances it should not be considered the punishments because of a personnel issue. Along with that the management decided to dismiss Mike only considering the immediate supervisor’s decision. Therefore it is strictly unethical and unfair.

It is not a willful damage to the property

Termination was done without calling any witnesses or evidences.

No employee had ever been tested in a property damage accident before, although accidents involving many thousands of dollars of merchandise had occurred.

As mike is terminated already, it will be possible to come to an agreement with mike to refer this complain to an arbitrator.

If mike also agreed with this it will be beneficial to both parties to agree for the final decision of the arbitrator.

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- Collect additional information to check the validity of the tentative solution.

Talk with the top management and make sure that the both parties agree with same solutions.

- Apply the solution and follow up on the case to make sure that it has been handled satisfactorily and the grievance eliminated.

The information that arbitrator should be aware of

- The company policy.

- Past practices of the company

- Principles of natural justice

Reasonable notice of the case must be given to the accused employee.

Reasonable opportunity of being heard in his or her defense (allowing the accused to defend/ present his side of the case.

Independent inquiry officer (not a person directly involved in the issue)

Inquiry officer to act in reasonably and in good faith, not arbitrarily and to ensure fair play.

- Gravity of the offense

- Length of service

- Past records of the employee

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02) Give what you have read here, how would you rule in this case if you were arbitrating it? What factors would lead you to your conclusion?

Arbitration is the process of bringing a business dispute before a disinterested third party for resolution. The third party, an arbitrator, hears the evidence brought by both sides and makes a decision. Sometimes that decision is binding on the parties.

An Arbitrator is a person chosen to decide a dispute or settle differences, especially one formally empowered to examine the facts and decide the issue.

When arbitrating Mike’s complain the following steps can be used.

1) Prehearing Conference

Prior to the hearing, the arbitrators and parties meet telephonically to schedule hearing dates and resolve preliminary issues.

Talk with the company and decide a date and a place that is convenience for both parties.

2) Discovery

Under this step exchange all the documents and information that needed for the hearing or inquiry.

Record Statements from both parties regarding the incident.

Record statement of the witnesses to the incident.

When recording the statements,

- The statements should be recorded in direct speech. The place of recording, time and in whose presence should be stated in the beginning of the statement.

- The statement should be taken down in legible and clear handwriting.

- Correction fluids or eraser should not be used.

- At the end, the statement should be read or allowed to be read by the employee and the management and get a statement saying the statement is true and given without any influence and the signatures from both parties.

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Collect the medical reports of Mike.

4) Hearing

The parties and arbitrators meet in person to conduct the hearing in which the parties present arguments and evidence in support of their respective cases.

Under this step Mike and the company management are given a chance to explain their views.

Mike gets a chance to explain about the reason to think why his termination is unfair. Also the management gets a chance to explain why they dismissed Mike.

5) Final Decision

After