Negotiation is a voluntary and informal process where parties in conflict engage in discussions to reach a mutually acceptable resolution. It is a dialogue-based method of dispute resolution.
Advantages of negotiation
- Quick and informal resolution of disputes
- It is confidential
- High degree of participation of parties in making decisions
- Increased ratification
- There is no need for recourse to a third-party neutral. This is important when none of the parties wants to involve outside parties in the process, i.e. the matter to be discussed or the dispute to be resolved may be highly sensitive in nature.
- Unlike the outcomes of certain adjudicative processes, i.e. the courts, the outcome of a negotiation only binds those parties who were involved in the negotiation. The agreement must not, of course, be contrary to Canadian law (i.e. An agreement to commit a crime would be illegal and thus void for public policy reasons).
- Assuming that the parties are negotiating in good faith, negotiation will provide the parties with the opportunity to design an agreement which reflects their interests.
- Negotiations may preserve and in some cases even enhance the relationship between the parties once an agreement has been reached between them.
- Opting for negotiation instead of litigation may be less expensive for the parties and may reduce delays.
Disadvantages of negotiation
- Parties cannot be compelled to negotiate
- Anyone who chooses to terminate negotiations may do so at any time in the process, notwithstanding the time, effort and money that may have been invested by the other party or parties.
- One of the parties may take advantage of others weak negative abilities.
Conciliation is a voluntary ADR process where parties in dispute seek the assistance of a neutral third party, known as a conciliator. The conciliator’s role is to facilitate communication, offer suggestions, and guide the parties toward a resolution.
Advantages of conciliation
- Parties are actively involved in negotiating a settlement.
- Parties are free to withdraw from conciliation.
- The conciliator can help the parties to explore alternatives which they might not have considered.
- Confidentiality is maintained.
Disadvantages of conciliation
- The process is not legal binding.
- No decision is guaranteed at the end.
- The process may be too informal that parties not take it seriously.
- One of the parties may reject the advances of the conciliator.