The Arbitration Process

INSTITUTE OF PERSONNEL MANAGEMENT

SRI LANKA

Case study cover page

Name of the programme:    Professional Qualification in Human Resource Management

Topic of the case study:      The Arbitration Process

 Module Number:                Module 6

 Name of the lecturer:          Mr. A.D Gomez

Contents

Acknowledgements                                                                                                                                  4

Introduction                                                                                                          5

Case study Body                                                                                                                                 6-14

Bibliography                                                                                                                                            15          

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Acknowledgements

I would like to thank Mr. A.D Gomez for guiding us on the case study and Mr. C. H Liyanage for providing us the knowledge on Employee Relations.

I am also very thankful to my parents and friends who supported me to complete this assignment.

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Introduction

Human resource is considered to be the most valuable resource for an organization. Therefore Proper Grievance Handling, Good Discipline and Arbitration are very important when working with people.

Disciplinary and grievance procedures are frameworks which provide  clear and transparent structures for dealing with difficulties which may arise as part of the working relationship from either the employer’s or employee’s perspective. 

These procedures are necessary to ensure that everybody is treated in the same way in similar circumstances, to deal with issues fairly and reasonably, and to ensure that employers are compliant with current legislation and follow the relevant Code of Practice.  

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.

The case study is about a forklift operator at a large warehouse. During a particularly busy shift, Mike tipped over a very large load of television sets. Although no one was injured in the accident, about $10,000 worth of merchandise was damaged. Mike was given a drug and alcohol tests. Mike tested positive for marijuana and was dismissed.

He immediately filed a grievance, claiming that he had smoked the previous weekend. But the company to reverse its decision and the matter will now be bought before an arbitrator. From this management case study it is expected to analyze the case study properly and give necessary recommendations using the knowledge that were gained under module two, Employee Relations.

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01) What strategy would you follow if you were preparing Mike’s Grievance? What kind of information would you want the arbitrator to be aware of?

According to the case study the reason for Mike’s grievance is immediate dismissal from the job without doing any inquiry.

“Mike tested positive for Marijuana and was dismissed. He immediately filed a grievance, claiming that he had smoked the marijuana the previous weekend that he was not incapacitated at the time of the accident, and that he had never been high at work. The company refused to reverse its decision, and the matter will now be brought before an arbitrator.”

In handling Mike’s grievance, the following steps can be followed.

• Define or describe the nature of the grievance clearly and as fully as possible

Describe the problem again in an empathetic manner. Clearly define the gravity of the damage according to the company policy.

• Collect all the facts that help to explain.

Collect all the facts about the incident.  Explain how, when, where, why and to whom the grievance occurred. Collect all the records, evidence and witnesses regarding the incident.

According to the principles of natural justice give an opportunity to Mike to explain what happened according to his point of view.

When handling the interview with the employee the following factors should be considered.

Stage 1- Listen

Welcome the person with the grievance and assure the subordinate that he can expect a fair and sympathetic hearing; this could help to put him in a better frame of mind.

Let him get the grievance off his chest- do not interrupt even to correct statement which is obviously wrong.

Show interest

Make notes particularly of points which require further clarification.

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Stage 2- clarify

Re- state the grievance to satisfy the subordinate has told the story correct.