Organisations miss out on benefits by favouring formal resolution
(Article by Lucie Mitchell CIPD Nov 2014)
‘Employers are failing to adopt mediation in the early stages of workplace disputes, despite the fact it could help employers avoid more formal procedures or litigation, a study has found.
Instead of mediation techniques, employers are increasingly turning to formal procedures, according to the research led by Professor Stephen Wood, employment relations expert at the University of Leicester.
Professor Wood’s study was based on analysis of two in-depth government reports – the 2004 and 2011 Workplace Employment Relations Surveys (WERS).
It also follows concerns expressed in the 2008 Gibbons Report, which showed that detailed written procedures were stifling informal, flexible methods of dispute resolution. As a result, changes were made to the regulatory framework of individual dispute resolution in the late 2000s.
However, the University of Leicester report shows there has been no reduction in formalisation since WERS 2011; instead, the trend of formal processes has continued to the point where it has now become “ubiquitous”, Professor Wood said.
“Disciplinary and grievance procedures have been promoted by governments as a way of underpinning good employment practices – they provide for fair and consistent treatment. And the changes to the tribunal system (the introduction of fees) has reduced the number of cases, but they are unlikely to reduce formalisation and may even reinforce it,” he warned.
The study also found that, despite the fact that workplace mediation is becoming a more popular method of handling disputes, there is little evidence to suggest it is being used in the initial stages of a dispute, when it could help employers and employees avoid more formal procedures or litigation.
Instead, it is increasingly taking place in response to increased levels of conflict or litigation.
Commenting on this, Professor Wood said: “There is a reluctance on the part of line managers to use mediation at the front end of a grievance or discipline case, or to pre-empt cases, as they may feel they should be able to deal with the issue themselves or be reluctant to admit there is much of a problem.”
Richard Saundry, another of the report’s authors, added: “Windows of opportunities for dealing with disputes are often missed and cases escalate, positions become entrenched, and it is often only when all other options have been exhausted that mediation is used as a last resort.”
The report also found that the incidence of individual employment disputes is mainly influenced by workplace and workforce characteristics, rather than conflict-resolution processes and procedures.
Acas figures on the take up of its Early Conciliation service, which launched on the 6th of April this year, show that it dealt with 37,404 cases until the end of September 2014. The mediation experts said that about 1,600 people are contacting them each week following a change in the law that requires potential employment tribunal claimants to contact Acas first, although they are under no obligation to proceed with mediation.
Anne Sharp, Acas chief executive, said: “Early Conciliation has maintained its strong start and has given us the chance to help more people resolve their disputes early.’
“We are receiving the number of notifications that we expected and are pleased that only around 10 per cent of employees are declining our offer to help them find a solution without the need to go to a tribunal.”
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