A recent report based on telephone interviews with managers in 500 small and medium companies in Ontario shows that generally managers in small companies are not aware of benefits of mediation.
The report suggests that only 7 % of the managers interviewed have used mediation in order to save time and money in settling supplier, employee and customers disputes. A further 56% have heard of this form of dispute resolution but have never used it.
Around two-thirds of all respondents said that mediation is only to be used as a last resort after an issue has been taken to court and the court did not reach a satisfactory verdict. Another wide-spread delusion among managers was that they viewed it as a very expensive procedure, suitable only for big enterprises.
Mediation is sometimes referred to as Alternative Dispute Resolution. The main benefit of mediation services is that they offer a way to solve problems between individuals and organizations without involving a court. Some courts refer cases to mandatory mediation before permitting the case to court. In Ontario the mandatory mediation program is compulsory for all civil cases. Under the Ontario Mandatory Mediation Program, all parties have to compile evidence regarding the issues in need of dispute resolution within 30 days after the last day for serving a notice of appearance and the court then appoints one of the parties that will have to organize the resolution session.
While the content of the mediation session is confidential and cannot be disclosed in court or in front of third parties, any agreements made at the session are legally binding. Therefore, if one of the disputants fails to observe the agreement, the other disputants may make a motion for judgment or enter into legal proceedings or arbitration. The non-compliant party is responsible for paying the mediators cancellation fee as well as being receiving court sanctions.
