Alternative Dispute Resolution

Paper Summary:

This paper illustrates how effective in-house or outside mediators can be in resolving disputes between labor and management in large organizations. The paper specifically focuses on the dispute between General Motors and the United Auto Workers regarding the generous pensions and health care settlements to retirees and current workers that were bankrupting the firm. The paper explains the resolution that was worked out between the two parties and notes that, as a result of the mediation process, it was revealed that the two parties had more in common than might be originally perceived, as both GM and the UAW knew that if GM had to declare bankruptcy, GM's workers would lose even more.

From the Paper:

"During the one recent example of very public labor negotiations between General Motors and the UAW, GM told the representatives of the United Auto Workers union that generous pensions and health care settlements to retirees and current workers were bankrupting the firm. Although the UAW resisted, GM threatened that if the company went bankrupt the suffering of working and retired GM employees would be even greater, as they would lose everything. Eventually, under a deal conducted through formal, mediated negotiations the union agreed that GM's health-care costs for union members, retirees and their families would be increased, and employees agreed to pay more for their health care and benefits, in exchange for an agreement with GM that kept some of the original benefits intact. "

Sample of Sources Used:

• "Alternative Dispute Resolution (ADR) - Definition." (2007) ADR.org. Retrieved 13 May 2007 athttp://www.hg.org/adr.html
• Bahls, Steven & Bahls, Jane. (Nov 2000). "Stuck In The Middle - Alternative disputeresolution." Entrepreneur. Retrieved 13 May 2007 at http://findarticles.com/p/articles/mi_m0DTI/is_11_28/ai_67936381/pg_3
• Isidore, Chris. (2005) "Doctor's orders: GM, UAW cut deal." CNN.com. Retrieved 13 May 2007 athttp://money.cnn.com/2005/10/17/news/fortune500/gm_wagoner/index.htm
• Phillips, Peter. (Sept 2004). "Ten ways to sabotage dispute management: read betweenthe lines to learn what it takes to run a successful program." HR Magazine. Retrieved 13 May 2007 at http://findarticles.com/p/articles/mi_m3495/is_9_49/ai_n6206621

More papers on Alternative Dispute Resolution:

• Research Paper # 74998 : "Alternative Dispute Resolution"
• Term Paper # 133983 : "Alternative Dispute Resolution and Mediation"
• Research Paper # 50843 : "Alternative Dispute Resolution as a Tool in Public Policy"
• Essay # 58864 : "The Alternative Dispute Resolution (ADR) Process"

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