| Mediation
involves all parties speaking to each other as in negotiations. Again,
the ultimate goal is negotiation to a common bottom line. However,
the use of mediation involves a third party, a mediator. It is the
mediator's job to bring both parties closer to the same bottom line.
The mediator's job is not easy as he has to steer both parties without
becoming personally involved. One party cannot back down from their
demands without losing face with their bosses. The other party being
either owners who have to face stockholders or councils, cannot surrender
to the demands. The use of a third party mediator makes it easier
because both parties can blame any changes on the mediator. However,
the truth of the matter is that the mediator does not make any decisions,
just channels the process.
The mediator has both a public and private position. (Public and
private refers to their position within the negotiating realm, not
the public media.) In the public position, both parties are present
and openly negotiate back and forth with the mediator as a witness.
The private position puts the mediator more in a shuttle diplomacy
mode. He hears the argument of one side in a private meeting and
then shuttles to the next private meeting to hear the other party
present their position. A mediator can often be put into a position
where information he hears from one party may be confidential by
request. This material cannot be divulged to the other party without
permission.
For the mediator to properly do his work, confidential information
may be very helpful when the mediator meets in private with each
party, his job is to listen and again to form a perception of each
party, what their demands are versus their real needs. In order
to do this, he may have several conversations that may include profit
line or other factors that may tip the hand in negotiations if the
other party is aware of the information. The mediator has a fiduciary
duty to talk with both parties without divulging confidential material.
The mediator should ask questions; questions that cause the parties
to think; questions that cannot be answered with a yes or no. In
order for this to work, the use of mediation should be a consensual
agreement between both parties. The selection of the actual mediator
should also be acceptable.
The private side of mediation is the major difference with negotiation.
In both cases the negotiator is neutral but in private meetings
he may push one side harder than the other.
Once the issue is resolved, the mediator should put any settlement
in writing so that both parties sign and acknowledge their agreement
with the settlement. The settlement agreement should focus on terms
of the settlement only, not the negotiating process.
It is best to keep mediation as free as possible, with the only
rules being confidentiality. The easiest thing for the mediator
to do is to try and force an issue, but the best results from mediation
would be if the parties came to the same solution without being
forced. Cost for negotiation mediation is generally split but can
also be mediated
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