HRM450 Employment Law: Compensation & Policy in HRM

Exploring Grievance and Dispute Resolution in the Coca-Cola Company
Name:
Institutional Affiliation:
Exploring Grievance and Dispute Resolution in the Coca-Cola Company
The management of grievances and conflicts in an organization is critical for its success in achieving its goals. Any employee dissatisfaction that is either expressed or hidden can lead to adverse impacts on the company such as decreased productivity. A grievance refers to a formal complaint that one gives in writing, demonstrating their lack of satisfaction with a particular issue. The absence of a proper mechanism for addressing these concerns can lead to strained working relationships that are crucial for optimum performance. The employees may present grievances regarding their working conditions, sexual harassment, wages, discrimination, and disagreement over the disciplinary processes among others. The human resource department has the responsibility of dealing with these matters and preventing them from escalating to levels that cause adverse effects. The line managers and supervisors are also charged with the role of addressing these issues. Additionally, the management and an organization’s policy developers have the duty of developing the right procedures for tackling such challenges.
Dispute resolution is also an important aspect that helps in addressing the issue at an early stage. The process preserves the employees/employer/union relationships. Also, through this, there is a development of efficient and active communication in the organization. Moreover, the conflict resolution procedure promotes the generation of creative ideas and problem-solving skills (Raines, 2013). However, both grievance management and the settlement of disputes demand the employment of the appropriate methods. The absence of this can contribute to more problems that can even lead to court cases. An understanding of the root causes of the arising conflicts is essential for the generation of the valid approaches to solving them. Through this, the undesired impacts can be avoided, saving the company both time and money.
Organization Profile
National Perspective
The American nation considers grievance and dispute resolution as an important matter in both its activities as a country and its industries. The government perceives the concept as a crucial aspect of dealing with issues of conflicts. The United States has over the years relied on arbitration to settle disputes. The method has not only been used in grievance situations, but also solving disputes with other nations such as in war scenarios. For instance, during the World War II, grievance arbitration became a prominent technique of dealing with conflict issues. During the time, there was a need to assure no work stoppages in the weaponry manufacturing and other industries. As a result, grievance arbitration sections were introduced in the collective bargaining agreements to ensure that solutions are generated without affecting the country’s production operations. Additionally, the method was utilized to settle scores between communities or tribes.
In the labor-management field, the labor unions in the United States were instrumental in the development of the concept when dealing with grievances in an organization. An enterprise that lacks this means of resolving conflict risks having employees with low morale, hence a decrease in productivity. Most of the unionized sectors in the United States contain clauses of arbitration in their collective bargaining agreements (Massey, 2003).
Coca-Cola’s Perspective
The company has also been keen on the employment of the grievance and dispute resolution techniques. The organization employs people from different cultures and nations; hence the human resource challenges are substantial. The proper management of the human capital is critical to the company’s success in America and also in the international markets. The company values its employees and has developed strategies to mitigate and solve conflicts that may affect their productivity as discussed by Umar (2016).
The Coca-Cola Company views the concept as the most important issue to assure maximum employee productivity. The organization perceives proper handling of a conflict as the right way to avoid further damage and prevent the problem from escalating. Over the years, Coca-Cola has faced various grievance and dispute issues touching on different aspects such as working conditions, wages, and discrimination among others. The challenges necessitated the creation of methods for addressing them. The organization has a conflict management system that is used in the identification and solving of the conflict. One of the techniques that the Coca-Cola Company utilizes is the Alternative Dispute Resolution (ADR) mechanism.
The Impact of Grievances and Disputes on Coca-Cola
The topic has been an important matter to the Coca-Cola Company. The organization has been facing many cases of employee dissatisfaction that has led to strikes. For instance, in December 2015, the Chicago Coca-Cola unionized workers went on strike, citing the rising health care premiums and intimidation by the management. Also, the organization that employs about 65,000 personnel in the United States is also facing disputes arising from the plans to consolidate operations and cut costs (Esterl, 2015). Additionally, there are many allegations of forced labor, child labor, and human rights violations that the company has encountered in the United States and globally.
The effects of the issues have been adverse leading to production and sales losses. The handling of the grievances has not been done in the right way and hence allowed to escalate to the level of personnel boycotting work. For example, the Teamsters Union that represents the unionized Coca-Cola employees in Chicago explains that the company has employed delaying mechanisms and threats of job loss. Also, they have changed clauses of the collective bargaining agreements without the involvement of both parties (Esterl, 2015). The mishandling of the disputes has contributed to the escalation of its impacts that cost both the worker and the employer. However, the company has tried in some instances to appropriately employ its conflict management plan that has led to the prevention of potential damages.
Coca-Cola’s Response to Grievances and Disputes
The Coca-Cola Organization has established some approaches for dealing with the conflicts that arise in the daily operations of the company. The response entails the conflict management system that has different methods of addressing the disputes and grievances. The techniques are given below.
Mediation
The method is an alternative to the litigation process that is time-consuming, expensive, unpredictable, and emotionally draining. Raines (2013) explains that the use of interest approaches such as mediation is cheap and also aids in the tackling of the disputes’ underlying matters. The company utilizes this technique to tackle the workplace cases of conflicts that arise in the organization. The mediation process entails the use of a mediator that facilitates the negotiation and helps in generating a solution. The Coca-Cola Company employs the services of the Mediation Works Incorporated (MWI) to assist in the overseeing of the dispute resolution process. The technique has been successfully used in addressing and solving conflicts between the Coca-Cola employees, their union representatives, and the employer.
Arbitration
Arbitration is another Alternative Dispute Resolution method employed by Coca-Cola in place of the litigation. The process is one of the oldest techniques that the company employs to resolve the conflicts and uses an impartial third-party. However, the procedure is more expensive and more time-consuming than the mediation process. The arbitration involves the provision of proof by the involved parties and the arbitrator (s) then makes a decision based on the presented evidence. The Coca-Cola Organization uses the arbitration services of the MWI Company. Coca-Cola has adopted the single binding arbitration method that requires that the employer honors the result of th...