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

Chapter 2: Resolving conflict: non-legislative methods 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?

Chapter 2: Resolving conflict: non-legislative methods Conflict Resolution 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

Chapter 2: Resolving conflict: non-legislative methods Non-legislative methods of resolving conflict (part 1) 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) hears both sides of the dispute and suggests a solutionhttp://  Commonly used in industrial disputes  Weakness is that the conciliator’s recommendations are not binding

Chapter 2: Resolving conflict: non-legislative methods Non-legislative methods of resolving conflict (part 2) Mediation  Mediator must be agreed to by both parties in dispute  Mediator (provided by LRC 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

Chapter 2: Resolving conflict: non-legislative methods The Law of Contract 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: offerer and offeree  Offerer makes the offer  Offeree receives the offer

Chapter 2: Resolving conflict: non-legislative methods Elements of a valid contract 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

Chapter 2: Resolving conflict: non-legislative methods 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

Chapter 2: Resolving conflict: non-legislative methods