Establishing the Alternative Dispute Resolution (ADR) System in the Department of Finance and Its Operating Bureaus

November 5, 2007 DOF DEPARTMENT ORDER NO. 044-07 ESTABLISHING THE ALTERNATIVE DISPUTE RESOLUTION (ADR) SYSTEM IN THE DEPARTMENT OF FINANCE AND ITS OPERATING BUREAUS Pursuant to Republic Act No. 9285 (Alternative Dispute Resolution Act of 2004) and Executive Order No. 523 dated April 7, 2006 of the Office of the President entitled "Executive Order on Administrative Justice Reform by Instituting the Use of Alternative Dispute Resolution" and in line with Department Order No. 43-07 dated October 30, 2007 entitled Institutionalizing the Use of Alternative Dispute Resolution (ADR) in the Department of Finance and its Operating Bureaus, the ADR System shall be established to govern the use of non-adversarial conflict resolution mechanism in managing and resolving both internal and external conflicts in the organization. I. LEGAL BASIS: 1. Republic Act No. 9285 (Alternative Dispute Resolution Act of 2004) April 2, 2004 "It is the policy of the State to actively promote and encourage the use of Alternative Dispute Resolution (ADR) as an important means to achieve speedy and impartial justice and to de-clog court dockets." 2. Executive Order No. 523, s. 2006 (Instituting the Use of Alternative Dispute Resolution in the Executive Department of Government) April 7, 2006 Mandates all executive agencies to review periodically their administrative dispute resolution processes and develop specific procedures to reduce delay in decision-making and to institutionalize the use of ADR processes in order to promote just and efficient administrative dispute resolution. 3. Book V of Executive Order No. 292 and Its Omnibus Rules, as Amended (The Civil Service Law and Rules) Rule XII. Complaints and Grievances Section 1(d) enumerates the Modes of Settling Employee-Management Dispute as follows: DACcIH (1) Conciliation (2) Mediation (3) Arbitration Voluntary Compulsory 4. Related issuances on the settlement of grievances. II. BASIC POLICIES: 1. A conflict/grievance shall be resolved expeditiously at all times at the lowest level possible. 2. In case no resolution is arrived at, the employee in conflict/aggrieved party shall lodge his grievance with the ADR Inter-Agency Team through the designated ADR Specialist of the Office concerned. 3. The ADR Inter-Agency Team shall employ the Mediation Process in resolving said conflicts/grievances. Mediation refers to the process where a trained neutral third party facilitates the negotiation between parties, and using learned techniques, helps them reach a voluntary, mutually satisfying agreement. 4. The employee in conflict/aggrieved party shall be assured of freedom from coercion, discrimination, reprisal and biased action on the grievance. 5. Mediation shall not be bound by legal rules and techniques. All proceedings shall be treated with utmost confidentiality and impartiality. 6. To institutionalize the use of ADR, particularly the mediation process, a continuing advocacy program shall be conducted at all levels in the organization. 7. A feedbacking and monitoring mechanism shall be installed to ensure that the ADR System efficiently and effectively addresses employee concerns/issues and grievances. III. OBJECTIVES: 1. To minimize/deter the filing of legal actions/complaints and encourage the use of mediation in the resolution of conflicts. 2. To improve workplace relationship through the use of non-adversarial approach to conflict resolution. 3. To provide a venue for a cost-saving and more expeditious resolution of disputes. HSCATc IV. COVERAGE: Offenses enumerated in Book V, Rule XII of Executive Order No. 292 and Uniform Rules on Administrative Cases in the Civil Service (Resolution No. 99-1936), except the following: a) Disciplinary cases, which shall be resolved pursuant to the Uniform Rules on Administrative Cases; b) Sexual harassment cases as provided for in RA 7877; and c) Union related issues and concerns. The implementation of the ADR System in this Department and its Operating Bureaus shall be in consonance with the implementation of the Civil Service Commission's Mamamayan Muna Program (MMP) particularly in the areas of immediate resolution of cases, service excellence and total client satisfaction. This Order shall take effect immediately. (SGD.) MARGARITO B. TEVES Secretary