1. Conflict In The Workplace
An ADR Plan For XXX

2. Conflict In The Workplace
An ADR Plan For DPT
Can Be Ugly and Disturbing

3. Conflict In The Workplace
Can Take Many Forms
Bullying
DisagreementsSexual Harassment
Poor Performance
Can Take Many Forms

4. Can Be Costly
Conflict if Not Resolved
Turnover
Preventable Terminations
Lawsuits and Arbitration
Lost Productivity

5. 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

6. 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

7. 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

8. Questionnaire
Interview with Director of HR – XXX
1. What is the XXX internal resolution process? Are there
any written documents of this process in place?
2. What are the company’s procedures to make such a
process 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 you
use an example, such as if an employee has a dispute
over the performance review with his/her manager, to
explain?
5. What is the process for compensation/benefit related
dispute?

9. 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?

10. Goals and Objectives
of XXX’s Dispute Resolution Process
 Keep disputes to a minimum-preventing potential
conflicts 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:

11. 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

12. Rationale
behind XXX’s Dispute Resolution Process
 Cost
Avoiding litigation saves time and money. If lawyers are
involved, legal fees can quickly add up. Cost estimates by DPT
legal team:
• $250k for a typical labor dispute to go to trial
• The need to go through the numerous digital outlets
for discovery (email, phone messages, texts,
computer history, etc.) add another $250k
• If brought to court, DPT could look to pay $500k

13. 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 generous
severance packages and being upfront from the beginning.

14. Flow and Procedures
of 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

15. 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.

16. 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.

17. 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

18. 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

19. 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.

20. 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

21. 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

22. Recommendations
to 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 process
Types of dispute and procedures to address them
Investigation process
Information 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 and
provide information about how the internal dispute resolution procedures
work.

23. 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

24. 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.

25. 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.

26. 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.

27. Questions
Thank You