Conflict In The WorkplaceAn ADR Plan For XXX

Conflict In The WorkplaceAn ADR Plan For DPT

Can Be Ugly and Disturbing

Conflict In The Workplace

Can Take Many Forms

Bullying

DisagreementsSexual Harassment

Poor Performance

Can Take Many Forms

Can Be Costly

Conflict if Not Resolved

Turnover

Preventable Terminations

Lawsuits and Arbitration

Lost Productivity

Who is XXX?

Founded in 1938 in XXX

Currently owned by XXXXX

Pharmaceutical contract development and manufacturing organizations (CDMO)

Focus mainly on sterile/non-sterile liquid and semi-solids

HQ in XXX

Manufacturing facility in XXX, NJ

Approximately 285 employees

Union employees present

Organization structure

Brief summary of the company

Scope of Project

Objective: Focus on disputes and workplace related claims

Resources:

• DPT’s written corporate policy and procedure manual

• Director of HR, XXX

Goal: Assess depth and effectiveness of corporate policies in place for dispute resolution

Initial Findings of XXX s Dispute Resolution and Arbitration Polices

XXX encourages employees to resolve, with internal dispute resolution procedures, any dispute or controversy which may arise

If the internal dispute resolution procedures do not work, any claim/dispute will be resolved solely through a neutral/binding arbitration process

Policy does not cover claims for Workers’ Comp, unemployment comp, or temporary disability benefits, which are not subject to arbitration

Questionnaire Interview with Director of HR – XXX

1. What is the XXX internal resolution process? Are thereany written documents of this process in place?

2. What are the company’s procedures to make such aprocess transparent to employees?

3. What are the goals/objectives of this process? –Prevention? Management? Resolution?

4. What is the flow/structure of the procedures? Can youuse an example, such as if an employee has a disputeover the performance review with his/her manager, toexplain?

5. What is the process for compensation/benefit relateddispute?

Questionnaire (cont’d)

Interview with Director of HR – XXX

6. What is the time for resolving issues? (Urgently?)7. What is the privacy policy related to disputes?8. Are investigations conducted (i.e. interviewing others

to obtain additional information)? If so, what are some of the steps taken for an effective investigation or resolution?

9. Are there any common delays obstructing resolution?10.What are some typical costs associated with dispute

resolution?11.Are there any safety concerns during or after dispute

resolution?

Goals and Objectivesof XXX’s Dispute Resolution Process

Keep disputes to a minimum-preventing potentialconflicts by proactively:

Setting up expectations and being clear about duties of employees in the workplace

Educating managers and supervisors to increase understanding and decrease confrontation

Being upfront and professional from the start and creating a professional working

Providing guidance for resolving internal disputes – employee handbook

Resolve workplace disputes quickly, by:

Awareness and Transparency of XXX’s Dispute Resolution Process

DPT follows the typical way to inform employees of its

dispute resolution policy and process - written policy in Employee Handbook

Arbitration agreement included with on-hire paperwork must be signed by employee

Supervisors are trained to handle and mitigate conflicts between employees under their supervision

Rationale behind XXX’s Dispute Resolution Process

Cost

Avoiding litigation saves time and money. If lawyers areinvolved, legal fees can quickly add up. Cost estimates by DPTlegal team:

• $250k for a typical labor dispute to go to trial

• The need to go through the numerous digital outletsfor discovery (email, phone messages, texts,computer history, etc.) add another $250k

• If brought to court, DPT could look to pay $500k

Rationale (cont’d)

behind XXX’s Dispute Resolution Process

Time

Time for HR to investigate Time the employees are taken away from their day to day activities Time for management to investigate or mediate disputes.

XXX does its best to avoid arbitration by offering generousseverance packages and being upfront from the beginning.

Flow and Proceduresof XXX’s Dispute Resolution Process

Employee vs. Employee

1. Supervisor should be able to mitigate the situation through management training. It is a relatively informal process

2. If situation escalates, HR can be brought in to help intervene and resolve the issue as informally as possible

3. Resolution is achieved when the dispute is no longer present and employees can either depart the company without further issue or employee interactions can return to normal

Flow and Procedures (cont’d)

of XXX’s Dispute Resolution Process

Employee vs. Manager

Complaint to HR would generate an investigation. HR will gather story from both the employee and manager, as well as other employees who may have relevant information, determine the facts and look for a solution that will solve the dispute.

HR acts as a mediator to some degree in this situation.

Flow and Procedures (cont’d)

of XXX’s Dispute Resolution Process

Employee vs. XXX

Usually initiated by contact from terminated employee through a lawyer.

XXX then contacts their legal department and discussions begin between the two legal teams - some form of negotiation.

If no terms are agreeable, XXX will typically push for arbitration as per the arbitration agreement signed at beginning of employment.

Privacy Concerns

No strict privacy policy

Most information during dispute is kept at a need to know basis

If investigation must occur and some matter of discussion must happen, privacy is rarely guaranteed

In the case that an employee is terminated for under performing or not following procedures, that situation may actually be used to demonstrate the severity and importance of following the rules and procedures (especially if safety related or GMP related)

XXX chooses to arbitrate with its employees as opposed to litigate also for the benefit of privacy to some degree

Investigations

Investigations are conducted in order to ensure the factual nature of the complaint

Both parties are interviewed separately. Co-workers and other associates may also be interviewed

HR then takes an objective approach to dissecting the facts from the stories and determining what actions must be taken to resolve the dispute and create a professional working environment

Safety Concerns

Most disputes at XXX are managed quickly and are minor in nature, keeping any threat of violence minimal

However, there is always a concern when terminating employees some precautions are observed

When terminating an employee, two company representatives are always present. One will always be near the door in order to make a quick exit to get assistance.

Summary

XXX is clear with employees on dispute policy from day 1

Focuses on supervisor training to keep disputes minimal and positive working environment

Address issues immediately

Provides a brief written policy and process on internal dispute resolution in Employee Handbook

Does The Current Process Work?

No disputes have gone to arbitration in last 6 years

Last dispute in arbitration was settled before the arbitrator made any decision

Roughly 5-10 situations have occurred in the last 6 years, mostly with terminated employees

When XXX enters its labor management meetings with the union, a mediator is present to help resolve any union related disputes that arise immediately

In 2008, 120 employees were laid off with no employees dissatisfied enough to go into arbitration

Recommendationsto XXX’s Dispute Resolution Process

Increase awareness and transparency of the internal dispute resolution process. Provide written guidance including:

The goals and objectives of the processTypes of dispute and procedures to address themInvestigation processInformation about confidentiality and safety concerns

Establish a dispute resolution hotline – phone#/email address /persons or groups to contact in case employees need assistance

Respond to complaints – communicate respect for people’s feelings andprovide information about how the internal dispute resolution procedureswork.

Recommendations (cont’d)to XXX’s Dispute Resolution Process

Provide resources to employees for external mediation if the conflict can not be resolved via the internal dispute resolution process, before it goes to arbitration for settlement

Establish an independent investigation committee – formed by selected members from both HR and managers whose position is considered to be neutral and specifically trained in ADR

Establish policies of confidentiality related to the dispute resolution process

Recommendations (cont’d)to XXX’s Dispute Resolution Process

Classify each complaint by Priority A, B, or C:

Priority A - It requires the Company’s immediate action. These

complaints involve a serious allegation(s) of an immediate threat to a

person, property, or the environment.

*The designated corporate HR contact will be responsible for conducting the investigation and entering a resolution within 24 hours.

Recommendations (cont’d)to XXX’s Dispute Resolution Process

Classify each complaint by Priority A, B, or C:

Priority B - These complaints require action and/or an investigation

within 24 hours. These complaints involve serious allegations but

do not pose an immediate threat to a person, property or the

environment.

*The HR contact will be notified via e-mail of the complaint and will be responsible for conducting the investigation and providing a resolution within three (3) calendar days.

Recommendations (cont’d)to XXX’s Dispute Resolution Process

Classify each complaint by Priority A, B, or C:

Priority C - These complaints are all other types of disputes that do not require an immediate response from the Company.

*The HR contact will be contacted via email of the complaint and is responsible for conducting an investigation and entering a resolution within two (2) weeks.

Questions

Thank You