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

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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) 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

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

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

Chapter 2: Resolving conflict: non-legislative methods

The Law of Contract

A contract is a legally binding agreement that is enforced in lawExample: 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

Chapter 2: Resolving conflict: non-legislative methods