Resolving conflict: non-legislative methods

1. 2 Resolving conflict: non-legislative methods What is a conflict? Conflict resolution Non-legislative methods for resolving industrial conflict The law of contract

2. Conflict is: Disagreements between people Between directors, management and unions, and business and its customers Causes of conflict: Directors and management have different goals (e.g. profitability) Business and customers disagree on selling price, quality and service Leadership style of managers can cause conflict with staff Industrial relations issues (e.g. wages, working conditions and productivity) Business and suppliers disagree about delivery dates, quality, discounts and credit terms What is conflict?

3. Conflicts should be resolved to avoid businesses and employees losing out Consequences of ignoring conflict Company can lose sales Employees lose wages Customers shop elsewhere Two methods of resolving conflict Legislative Non-legislative Conflict Resolution

4. Negotiate a solution Aim is to resolve the dispute quickly Involves direct discussion between parties (e.g. employer–employee or employer–union) Both sides might have to compromise Conciliation Third party (conciliator – often an Industrial Relations Officer (IRO) provided by Labour Relations Commission (LRC) http://www.lrc.ie/) hears both sides of the dispute and suggests a solution Commonly used in industrial disputes Weakness is that the conciliator’s recommendations are not binding Non-legislative methods of resolving conflict (part 1)

5. Mediation Mediator must be agreed to by both parties in dispute Mediator (provided by LRC http://www.lrc.ie/documents/multilingualpdfs/5english.pdf) intervenes when dispute is dead-locked and neither side wants to continue Mediator suggests ways to ‘move things on’ to reach a solution Arbitration Both sides ask for an arbitrator to be appointed Both sides agree the decision of the arbitrator is binding Not used often in industrial disputes Non-legislative methods of resolving conflict (part 2)

6. A contract is a legally binding agreement that is enforced in law Example: buying a house or obtaining a loan Two parties involved in a contract: offererand offeree Offerer makes the offer Offeree receives the offer The Law of Contract

7. All these must be present for a contract to be valid Agreement: the offer and acceptance Consideration: the money value of contract Intention: both parties want the contract for it to exist Capacity: parties must be of legal age (18 or over) to enter into contract Consent: both parties must consent to contract’s terms without pressure Legality of form: if a contract is not legal, it’s not binding Writing: contract may need to be in writing to be valid Elements of a valid contract

8. Can be terminated by either party By performance: obligations not carried out By agreement: mutual consent of offerer and offeree By breach of contract: one party didn’t fulfil obligation By frustration: unforeseen events (e.g. death, theft or, bankruptcy) Remedies for a breach of contract Damages: financial compensation Specific performance: court orders that terms must be fulfilled Rescind the contract: contract cancelled by court order Termination of Contract