Dispute Resolution

Dispute resolution

Process of bringing an ongoing disagreement about wages or conditions between employer and employees to an acceptable conclusion

Dispute Resolution process

Step 1. Employee and/or representative discuss grievance complaint to employer
Step 2. Grievance is discussed with Human Resource Manager as mediator
Step 3. Grievance is referred to FWC for mediation
Step 4. FWC carries out Arbitration

Mediation

The confidential discussion of issues with a neutral third party, who helps the parties in disputes work towards an agreement but does not offer suggestions of solutions

Advantages of mediation

- Cost effective due to less formal setting
- Quicker then arbitration
- Positive relationship is maintained due to both working together

Disadvantages of mediation

- Not legally binding so a party may not honour the commitment
- One party may refuse to attend or refuse to reach a conclusion
- Management is stronger and may intimidate employees

Arbitration

Dispute resolution involving the Fair Work Commision hearing both arguments and determining a legally binding outcome

Advantages of Arbitration

- Decisions are legally binding so there is a sense of closure
- Compulsory to attend

Disadvantages of Arbitration

- Parties have reduced control of the outcome
- More expensive and time consuming then mediation
- Less effective at preserving relationships

Similarities between Mediation and Arbitration

- Both methods solve disputes
- Both can have independent 3rd parties

Differences between Mediation and Arbitration

- Mediation is not always legally binding, Arbitration is always legally binding
- Mediation involved a mediator, Arbitration involved the FWC
- Mediation decision may be made, Arbitration decision always made

Strike

A refusal to work organised by a workers union as a form of protest in an attempt to gain more pay or improve working conditions from the employer