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Mediation Pledge in Ukraine?

19/ 02/ 2019
  Halyna Yeromenko. Head and lecturer of the Ukrainian Mediation Center [kmbs], candidate of legal sciences, accredited mediator of CEDR (Great Britain) Mediation is service in negotiations, based on the principles of voluntary participation of the parties in the negotiation process, neutrality, confidentiality, responsibility of the parties for finding a solution that will be fair to all. The mediator is responsible for the effective negotiation process, as well as by means of questions, helps the parties to grasp their real interests, assess the realities and quality of their negotiation alternatives, generate as many solutions as possible and choose the best one. The value of the mediator becomes evident in situations where the parties are not able to negotiate, taking into account only the interests of the parties, or do not want to talk to each other due to the high escalation of the conflict. In both cases, they lose, leaving the benefits, relations, partnership, etc. Studies show that loss of trust, relationships, and cooperation opportunities leads to losses that are calculated in very specific financial indicators. Conversely, qualitative negotiations are an opportunity to get additional resources without investing in additional investments. For example, the productivity of employees who are loyal to their company grows to 40%! Employees prefer to stay in the trusted company, even if they are offered in other companies a salary of up to 10% higher! Perhaps this is explained by the growing 21st Century Corporate ADR Pledge. More than 4,000 large corporations, 1,500 well-known in the world of legal coma, state agencies signing ADR Rledge commit themselves to using alternative dispute resolution and dispute resolution methods (such as mediation, negotiation, arbitration) before they go to court. Why they do it? For some companies, it is a search for more effective solutions: how to get more resources spending less resources. That is why the large-scale German companies such as Bombardier, Audi, Areva, Bayer, Siemens, SAP, Lufthansa Technik, ABB and others regularly participate in the Round Table Mediation and Conflict Management Deleted Wirtschaft (RTMKM). Corporate media mediators of these companies who are jointly looking for the best ways to apply their skills to resolve conflicts within companies, resolve disputes with dissatisfied customers (B2C), and resolve external B2B disputes. In terms of numbers, according to a study by the Center for Effective Dispute Resolution in 2014, about 9500 mediations in civil and commercial disputes are conducted annually in the UK. More than 75% of these disputes are resolved within one day and another 11% a few days later. Thus, 86% of all mediations carried out end with the agreement of the parties. At the same time, business savings are about 2.4 billion pounds a year in the form of reducing the loss of management time, maintaining business relations, stopping the decline in productivity and reducing the cost of legal services. Altogether, since 1990, mediation as a form of activity has contributed about 17.5 billion pounds worth of savings to businesses. For comparison, the CEDR study suggests that the aggregate cost of mediator services did not exceed £ 22.5 million at the same time. For other companies, the signing of ADR Pledge is a matter of ethics for doing business and corporate social responsibility. The ecological resolution of conflicts is aimed at preserving the resources of the company, which assumes responsibility for finding solutions in its own dispute, as well as the state, because the state system for resolving disputes, which saves public funds, will not be put into effect. In addition, for example, in Latin American countries, the introduction of mediation has led to a reduction in corruption. For Ukraine, social dialogues - common platforms where the projects of the green economy - effective partnership of the state, business, local authorities of the territorial administration, residents of certain territories, etc. are discussed. Such dialogues are effective only when participants are able to express their interests and understand the interests of others, analyze them, properly manage the negotiation process, manage the emotions of their own and other participants, build or restore confidence, etc. Such skills are made up of people who have learned to be professional mediators and can apply skills both during the mediation process, helping others, and in their own negotiation processes. The emphasis in this case is on the ability of mediations to develop on special training programs. There is a staggering misconception that all who were at least once mediators in the negotiations are mediators. The inability of the intermediary to work with the interests of the parties and to build an effective process: 1) reduces the ability to find additional value for all; 2) discredits the reputation of the service. If mediation is so valuable, why is it so little known by business? First, the business-mediation phenomenon is quite young in Ukraine, which has been actively developing for about eight years as a result of the implementation of the joint project of the International Finance Corporation (IFC) and the Kyiv-Mohyla Business School (Ukrainian Center for Mediation at kmbs). Over the years, the experience of conducting mediations has been developed, which proves the value of this service for Ukrainian business, namely, its demand and effectiveness to resolve any disputes within and outside the company. The second reason is trust in the service and those who provide it (mediators). The process is conducted confidentially, so using successful mediation experience to advertise services is extremely difficult. Trusting is a complex and gradual process. The third reason is the problem of engaging in the second-party negotiation process. The party invited to mediation is usually afraid to be the initiator of the negotiations, not to look like a weak side. Therefore, the entry into contracts of mediation clauses - mediation clauses, administrators trying to resolve a dispute through mediation - is more important than resorting to arbitration and a court. Appealing to the procedures established in the contracts allows you to invite the second party to the mediation, while retaining the face of the invited parties. You do not always have to invite an external specialist to help companies find additional resources using a mediator. Internal in-house mediators, hr-managers, compliance-managers, corporate lawyers, project managers have the expertise of a mediator - this is a golden fund of the company, which allows us in our difficult time to make money from the air: everything we do not lose, (and the conflict - its always a loss) we find. To get started you need a try. What does the company lose?

Halyna Yeromenko

Head and lecturer of the Ukrainian Mediation Center [kmbs], candidate of legal sciences, accredited mediator of CEDR (Great Britain)

Mediation is service in negotiations, based on the principles of voluntary participation of the parties in the negotiation process, neutrality, confidentiality, responsibility of the parties for finding a solution that will be fair to all.

The mediator is responsible for the effective negotiation process, as well as by means of questions, helps the parties to grasp their real interests, assess the realities and quality of their negotiation alternatives, generate as many solutions as possible and choose the best one.

The value of the mediator becomes evident in situations where the parties are not able to negotiate, taking into account only the interests of the parties, or do not want to talk to each other due to the high escalation of the conflict. In both cases, they lose, leaving the benefits, relations, partnership, etc.

Studies show that loss of trust, relationships, and cooperation opportunities leads to losses that are calculated in very specific financial indicators. Conversely, qualitative negotiations are an opportunity to get additional resources without investing in additional investments. For example, the productivity of employees who are loyal to their company grows to 40%! Employees prefer to stay in the trusted company, even if they are offered in other companies a salary of up to 10% higher!

Perhaps this is explained by the growing 21st Century Corporate ADR Pledge. More than 4,000 large corporations, 1,500 well-known in the world of legal coma, state agencies signing ADR Rledge commit themselves to using alternative dispute resolution and dispute resolution methods (such as mediation, negotiation, arbitration) before they go to court.

Why they do it?

For some companies, it is a search for more effective solutions: how to get more resources spending less resources. That is why the large-scale German companies such as Bombardier, Audi, Areva, Bayer, Siemens, SAP, Lufthansa Technik, ABB and others regularly participate in the Round Table Mediation and Conflict Management Deleted Wirtschaft (RTMKM). Corporate media mediators of these companies who are jointly looking for the best ways to apply their skills to resolve conflicts within companies, resolve disputes with dissatisfied customers (B2C), and resolve external B2B disputes.

In terms of numbers, according to a study by the Center for Effective Dispute Resolution in 2014, about 9500 mediations in civil and commercial disputes are conducted annually in the UK. More than 75% of these disputes are resolved within one day and another 11% a few days later. Thus, 86% of all mediations carried out end with the agreement of the parties. At the same time, business savings are about 2.4 billion pounds a year in the form of reducing the loss of management time, maintaining business relations, stopping the decline in productivity and reducing the cost of legal services. Altogether, since 1990, mediation as a form of activity has contributed about 17.5 billion pounds worth of savings to businesses. For comparison, the CEDR study suggests that the aggregate cost of mediator services did not exceed £ 22.5 million at the same time.

For other companies, the signing of ADR Pledge is a matter of ethics for doing business and corporate social responsibility. The “ecological” resolution of conflicts is aimed at preserving the resources of the company, which assumes responsibility for finding solutions in its own dispute, as well as the state, because the state system for resolving disputes, which saves public funds, will not be put into effect. In addition, for example, in Latin American countries, the introduction of mediation has led to a reduction in corruption.

For Ukraine, social dialogues – common platforms where the projects of the “green economy” – effective partnership of the state, business, local authorities of the territorial administration, residents of certain territories, etc. are discussed. Such dialogues are effective only when participants are able to express their interests and understand the interests of others, analyze them, properly manage the negotiation process, manage the emotions of their own and other participants, build or restore confidence, etc.

Such skills are made up of people who have learned to be professional mediators and can apply skills both during the mediation process, helping others, and in their own negotiation processes. The emphasis in this case is on the ability of mediations to develop on special training programs. There is a staggering misconception that all who were at least once mediators in the negotiations are mediators. The inability of the intermediary to work with the interests of the parties and to build an effective process: 1) reduces the ability to find additional value for all; 2) discredits the reputation of the service.

If mediation is so valuable, why is it so little known by business?

First, the business-mediation phenomenon is quite young in Ukraine, which has been actively developing for about eight years as a result of the implementation of the joint project of the International Finance Corporation (IFC) and the Kyiv-Mohyla Business School (Ukrainian Center for Mediation at kmbs). Over the years, the experience of conducting mediations has been developed, which proves the value of this service for Ukrainian business, namely, its demand and effectiveness to resolve any disputes within and outside the company.

The second reason is trust in the service and those who provide it (mediators). The process is conducted confidentially, so using successful mediation experience to advertise services is extremely difficult. Trusting is a complex and gradual process.

The third reason is the problem of engaging in the second-party negotiation process. The party invited to mediation is usually afraid to be the initiator of the negotiations, not to look like a weak side. Therefore, the entry into contracts of mediation clauses – mediation clauses, administrators trying to resolve a dispute through mediation – is more important than resorting to arbitration and a court. Appealing to the procedures established in the contracts allows you to invite the second party to the mediation, while retaining the face of the invited parties.

You do not always have to invite an external specialist to help companies find additional resources using a mediator. Internal in-house mediators, hr-managers, compliance-managers, corporate lawyers, project managers have the expertise of a mediator – this is a golden fund of the company, which allows us in our difficult time to make money from the air: everything we do not lose, (and the conflict – it’s always a loss) we find. To get started you need a try. What does the company lose?

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