Mediation process: Grocery Industry Dispute Resolution Scheme
Mediation is the preferred option for dispute resolution under the Scheme. However, if the parties do not agree to mediate, the dispute will proceed to adjudication.
Mediation is a simple and confidential way to resolve disputes. In this process, the parties work with a mediator to identify the issues, develop and explore settlement options, assess the implications of settlement options and negotiate an agreement that will work for everyone.
The aim is to empower parties to resolve conflicts quickly and affordably without needing a decision from an adjudicator, arbitrator or judge. Mediation allows for flexible and creative solutions beyond strict legal rules. It can help preserve relationships and it keeps the decision-making power in the hands of the parties.
Process Overview
Start the process
Here is a step-by-step guide on how to initiate dispute resolution under the NZDRC Grocery Scheme.
Appointment of a mediator
A mediator will typically be appointed within 3 Working Days, or sooner for urgent cases.
Preparation
Good preparation by both the parties and the mediator is key to a successful mediation. Ensure you are set up for success before the mediation begins.
Opening statement
An opening statement in mediation is an initial opportunity for each party to express their perspectives and goals, setting the groundwork for negotiation.
Issue identification
In mediation, identifying issues is key to understanding the conflict and facilitating discussions towards a mutually acceptable resolution.
Joint sessions and caucusing
Mediation processes typically involve joint sessions and caucusing. These stages alternate as needed to facilitate effective resolution.
Outcomes
Mediation outcomes can range from full to partial settlements or no resolution, but the process is always beneficial in developing understanding, preserving relationships, and ensuring confidentiality.
Cost of mediation
Our focus is on delivering cost-proportionate process solutions. Find out more about the cost of mediation.
Mediation timeframe
Typically, a Dispute under the Scheme will be resolved within 25 Working Days or less from the date the Claimant serves a Notice of Dispute on the Respondent.
The time required for Mediation can vary depending on the complexity of the matter and the Parties’ willingness and availability to engage in negotiations. The Mediator will, in consultation with the Parties, establish a timetable for the exchange of information and Position Statements and set a date for the Mediation within 25 Working Days after the Dispute is referred to the Scheme.
This period can be varied by the Mediator (or by agreement of the Parties) if the Mediator considers that additional time is reasonably required for any reason. An extension of time can be made at the request of any Party or on the Mediator’s own initiative.
Mediation is likely to be the quicker dispute resolution process. It is also the least formal process, involving only an exchange of Position Statements before the joint Mediation meeting. In some cases, if the parties are ready and prepared to mediate, Mediation can be completed within just a few days of the Mediator’s appointment.
Step 1. Start the process
Follow this step-by-step guide to initiate dispute resolution under the Scheme:
1. Serve a Notice of Dispute: The dispute resolution process begins when the Claimant serves a notice of its intention to commence dispute resolution under the Scheme on the other Parties. This is known as a Notice of Dispute.
Content of the Notice of Dispute: The Notice of Dispute must be in the form published on this website at the time the Notice of Dispute is served. It must contain the following information:
- A statement that the Claimant requires the Dispute to be referred to Dispute Resolution under the Scheme.
- Identification of the requirement(s) of the Grocery Supply Code claimed to have been breached, if applicable.
- A brief description of the nature of the Dispute.
- The names and contact details of the Parties and (if known) their Representatives, including details for electronic communication (if available).
- Identification of the Contract, relationship, or basis of claim that the Dispute relates to.
- An explanation of the compensation, relief, or remedy that is sought.
A Notice of Dispute that is missing any of the minimum information is invalid. However, the Claimant can fix the Notice of Dispute by providing the correct information within three Working Days of receiving notice that the information was missing.
2. Apply to NZDRC: Once a Notice of Dispute has been served, an Application for Dispute Resolution must be completed within five Working Days of the Notice of Dispute being served. This period can be extended by written agreement between the Parties.
Form for Application for Dispute Resolution: The Application for Dispute Resolution must be made using this form:
3. NZDRC Offers Mediation: If the Application for Dispute Resolution is valid, NZDRC will appoint a Mediator upon confirmation that both Parties agree to Mediation under the process below. If the Application is invalid, NZDRC will advise the Claimant, The Claimant has three working days to fix and resubmit it.
If the Parties do not agree to Mediation, NZDRC will appoint an Adjudicator.
Step 2. Appointment of a Mediator
After receiving a valid application, NZDRC will do its best to appoint a suitably qualified and independent Mediator within three working days.
NZDRC is the only entity that has the power to appoint a Mediator under the Scheme. If the parties suggest someone, NZDRC will consider this as a nomination, but will make the final decision based on criteria in the Rules.
When selecting a Mediator, NZDRC considers various factors, such as any agreements between the parties, the nature and value of the dispute, and the availability of the person to effectively mediate the case. The appointed Mediator must be neutral and can’t act as an advocate for any party.
NZDRC might ask the parties for more information to ensure the most appropriate appointment is made and there are no conflicts of interest. The parties should provide this information quickly to ensure there are no unnecessary delays.
Any appointment made by NZDRC is final and confirmed in writing. The date this notification is given is the Commencement Date under the Scheme Rules. All dates for the mediation process will run from the Commencement Date.
Step 3. Preparation
Before engaging in mediation, both the Mediator and the parties involved must ensure they are well-prepared.
The Mediator may speak with the parties in advance of any joint mediation session to introduce themselves, establish a structure for the mediation to follow, and answer any questions the parties might have. The Mediator’s preparation will also involve gaining a good understanding of the dispute, the parties involved, and the context in which the mediation has arisen.
The Mediator will also request that the parties exchange position statements prior to the mediation. A position statement is a document prepared by each party prior to mediation. It outlines their understanding of the dispute, their positions, and their interests. It helps to clarify the issues at hand and sets the foundation for discussions during mediation. The position statement is typically exchanged between the parties and the Mediator, providing everyone with a clear overview of the dispute and each party’s stance.
Mediation is a negotiation, and it is also useful to think about the needs and interests of the other party and to think about possible options for mutual gain or satisfaction. After all, mediation provides a forum for the parties to engage constructively and to problem-solve with a view to resolving their dispute in a way that all parties are content with.
Step 4. Opening statement
An opening statement in mediation is the initial step in the process where both parties get a chance to present their side of the story. In essence, it’s each party’s introduction to the dispute, where they outline their main concerns, interests, and what they hope to achieve from the mediation.
The purpose of an opening statement is to set the stage for the discussions that will follow. It provides a safe and structured space for each party to express their feelings and perspectives without interruption. This helps everyone involved to understand the situation from each other’s point of view, laying the foundation for a constructive dialogue and negotiation process.
Step 5. Issue identification
In mediation, identifying issues is a crucial step where the Mediator helps the parties involved to distinguish and understand the key points of conflict that need to be resolved. This is not about deciding who is right or wrong but rather about understanding what matters most to each party.
It’s important to acknowledge that mediation is a flexible process and may be conducted in many ways. However, in the early stages, the Mediator is likely to guide a joint discussion where everyone openly talks about their concerns. This helps to bring the underlying issues to the surface. These could be misunderstandings, differences in expectations, or conflicting interests. Once these issues are identified, they can be addressed one by one in the mediation process.
This step of issue identification can help to clarify the dispute and can often reveal that parties have more common ground than they initially thought. This makes it easier to move forward towards finding a mutually acceptable resolution.
Step 6. Joint sessions and caucusing
During a mediation process, joint sessions and caucusing are two common stages. In a joint session, all parties come together to discuss the issues at hand. With the help of the Mediator, they openly share their points of view, concerns, and what they hope to achieve. In joint session, everyone is able to get a clear understanding of each other’s perspectives and the issues that need resolving.
A caucus, on the other hand, is a private session where the Mediator meets with each party separately. These meetings are confidential and allow each party to openly discuss their concerns and potential solutions with the Mediator. The Mediator can then use this information to help guide the parties towards a resolution that is acceptable to everyone. These private meetings are a safe space where each party can feel comfortable to express their thoughts and feelings without judgement. A Mediator will not share anything disclosed during caucus with the other parties without permission.
During a mediation, the parties may move in and out of joint sessions and caucusing as required to allow the mediation to proceed as effectively and efficiently as possible.
Step 7. Outcomes
The outcomes of a mediation process can vary. In some cases, parties may reach a full settlement where all issues are addressed and agreed upon. This is the ideal outcome, leading to a formal agreement that is mutually satisfactory and binding for all parties involved. The agreement may be comprehensive, addressing all aspects of the dispute, or it may be limited to specific points of contention.
In other instances, a partial settlement may be achieved where some but not all issues are resolved. This can still be beneficial as it can narrow down the areas of dispute and make any further negotiations or legal proceedings more manageable.
There are also cases where no settlement is reached. While this might seem like a failure, it’s important to note that the mediation process itself can still be beneficial. It provides a platform for parties to express their views and understand each other’s perspectives, which can lead to a clearer understanding of the dispute. This can be valuable in maintaining relationships and could potentially facilitate future negotiations.
If the parties are unable to resolve all issues, the Claimant may submit the dispute to adjudication under the Scheme.
Regardless of the outcome, confidentiality is a fundamental aspect of mediation. Anything discussed during the process is generally confidential and cannot be used in court or disclosed outside of the mediation without consent. This encourages open and honest communication, as parties can speak freely without fear that their words will be used against them later. This confidentiality extends to the Mediator as well, who is typically not allowed to disclose any information about the mediation process or its outcome, unless required by law or agreed by all parties.
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