Guidelines for the Implementation of Conciliation-Mediation for Cooperative Disputes at the Cooperative Development Authority

March 20, 2007

CDA MEMORANDUM CIRCULAR NO. 03-07

 

These Guidelines were developed pursuant to Section 14, Article XII of the 1987 Constitution; Republic Act No. 6939 creating the Cooperative Development Authority as an agency mandated to provide, among other things, technical assistance to cooperatives and to implement the cooperative laws, and pursuant further to Section 8, stating that upon request of both parties, the CDA shall mediate and conciliate disputes within and between cooperatives; and Article 121 of Republic Act 6938, otherwise known as the Cooperative Code of the Philippines, which directs that disputes between and among cooperative members, officers, directors and committee members and intra-cooperative disputes shall, as far as practicable, be settled amicably in accordance with the conciliation or mediation mechanisms embodied in the by-laws of the cooperative and in applicable laws, congruent with State recognition of the principle of subsidiarity under par 3, Article 2 of the same Republic Act and reinforced by R.A. 9285, otherwise known as the Alternative Dispute Resolution Act of 2004.

SECTION 1. Declaration of Principles. — The Conciliation-Mediation Process shall be conducted in accordance with the following principles:

a) Subsidiarity — all disputes shall be primarily resolved amicably at the Cooperative Level;

b) Confidentiality — no transcript of the proceedings shall be taken during the conciliation-mediation process and that all notes and admissions of the parties shall be inadmissible in any other proceedings;

c) Speedy inexpensive conciliation-mediation process — no technical rules of evidence shall be applicable including presence of counsel;

d) Flexibility — the Conciliation-Mediation Section/Unit, Con-Med Officer and any other party involved in the process shall be vested with ample discretion to conduct the same and to pursue whatever Conciliation-Mediation options as agreed upon by the parties;

e) Liberal Construction — these guidelines shall be liberally construed in favor of attaining the paramount objective of amicably settling disputes at the lowest levels;

f) Independence and Autonomy — the members of the Con-Med Section/Unit, the Con-Med Officers and Conciliator-Mediators shall be insulated from all types of external influences and pressures;

g) Accessibility — the process is open to all disputants desirous of solving their disputes and/or problems amicably as the CDA recognizes the need to make justice accessible as widely as possible to all members of the cooperative;

h) Voluntariness — submission to the conciliation-mediation process shall be completely voluntary.

SECTION 2. Scope. — These Guidelines shall govern the administration and operation of the Cooperative Conciliation-Mediation Section/Unit (the "Con-Med Section/Unit") of the CDA as well as the procedure in settling inter- and intra-cooperative disputes where Conciliation-Mediation had failed at the primary, secondary or tertiary levels. CDESIA

SECTION 3. Coverage. — All cooperative disputes and issues between and among cooperative members, board/directors, committee/member, other officers, employees, clients and/or beneficiaries of the cooperative.

SECTION 4. Definition of Terms. —

a) Conciliation — A process whereby a neutral third party takes a vigorous and active role in assisting disputants formulate solutions in order to reach an amicable settlement.

b) Mediation — A process whereby neutral third-party facilitates the negotiation between disputing parties to reach a voluntary, mutually satisfactory outcome.

c) Conciliator-Mediator — A qualified individual who provides conciliation-mediation services.

d) Conciliation-Mediation Officer — A member of the Legal Section/Division management staff designated by the Chief of the Legal Section to act as liaison to the Con-Med Section, Con-Med Committees and the Con-Mediation Section and the disputants.

e) Pool of Conciliator-Mediators — A group of Conciliator-Mediators recognized by the CDA.

f) Conflict Coaching — A stage in the conciliation-mediation process, the objective of which is to clarify the issues and interests of each party.

g) Certificate of Non-Settlement — A document issued by the Primary Cooperative or Union/Federation Conciliation-Mediation Committee in case of failed or refused Conciliation-Mediation.

h) Certificate of Non-Resolution — A document issued by the CDA in case of failed or refused Conciliation-Mediation.

i) Failed Conciliation-Mediation — A situation where no settlement is reached by the disputants after the conflict coaching has started.

j)  Refused Conciliation-Mediation — A situation when one or both parties refused to enter Conciliation-Mediation or failed to appear despite notice or despite signing of the Agreement to Conciliate-Mediate.

k) Conciliated-Mediated Settlement Agreement — A written agreement following a successful conciliation-mediation proceedings prepared and duly signed by the parties with the assistance of the Conciliator-Mediator. aCSTDc

SECTION 5. Establishment of the Conciliation-Mediation Section/Unit. — Every extension office of the CDA shall establish a Con-Med Unit while the Central Office shall establish a Con-Med Section, which shall function independently from the Legal Sections/Division of the CDA.

SECTION 6. Function of the Conciliation-Mediation Section. — The Con-Med Section shall have the following functions:

a) Develop a recognition system for Conciliator-Mediators servicing the Cooperative Sector;

b) Recommend to the Board of Administrators a list of Conciliator-Mediators for recognition;

c) Maintain a centralized database of certified Conciliator-Mediators;

d) Monitor the performance of Con-Med Units at the Extension Offices;

e) Submit to BOA a consolidated semi-annual report stating the accomplishments of the Con-Med Program;

f) Develop and manage a consolidated database of con-med cases handled by the coop primaries, union/federations and the CDA;

g) Assist in the filing of Conciliation-Mediation Settlement Agreements with the proper courts, if necessary;

h) Recommend the conduct of a Continuous Education and Training Programs and the adoption of a Code of Ethical Standards & Standard Monitoring Forms; and

i) Recommend appropriate fees for conciliation-mediation, it necessary.

SECTION 7. Functions of the Conciliation-Mediation Unit. — The Con-Med Unit shall have the following functions:

a) Implement the recognition system developed by the Central Office;

b) Recommend to Central Office list of Conciliator-Mediator for recognition;

c) Maintain a regional database of certified Conciliator-Mediators;

d) Monitor the performance of Con-Med Committees at the Primaries, Federations or Unions within their jurisdiction;

e) Submit to Central Office semi-annual report of the Con-Med Program;

f) Maintain database of con-med cases handled by the coop primaries, federations and unions; and TEAICc

g) Assist in the filing of Conciliation-Mediation Settlement Agreements with the proper courts, if necessary.

SECTION 8. Conciliation-Mediation Officer — Designation and Functions. —

a) The Chief of the Legal Division/Regional Director shall recommend for designation a trained and recognized Conciliator-Mediator from the Legal Division/Section/Unit as Con-Med Officer.

b) The Con-Med Officer shall have the following functions:

1. Receive and process complaints elevated from the primary or union/federations;

2. Maintain a database of Recognized Conciliator-Mediators;

3. Monitor the performance of Con-Med Committees of Coop Primaries, Federations or Unions within its jurisdiction;

4. Submit to the Conciliation-Mediation Section/Unit a consolidated quarterly report stating the accomplishments of the con-med program;

5. Submit to the Conciliation-Mediation Section/Unit semi-annual recommendations on improving the system;

6. Develop and manage a consolidated database of cases; and

7. Assist the filing of Conciliated-Mediated Settlement Agreements with the proper courts, if necessary. SEcITC

SECTION 9. Filing of Complaint. — Any member of the cooperative who has a complaint constituting a dispute, against another member, officer or employee of the same cooperative, shall file said complaint before the Conciliation-Mediation Section/Unit. An oral complaint shall be reduced in writing, with the assistance of the Conciliation-Mediation Officer. Such complaint/s shall be accompanied by a Certificate of Non-Settlement issued by the Con-Med Committee which previously held jurisdiction over the dispute.

SECTION 10. Contents of Complaint. — The complaint shall contain the name of the cooperative complainant and its authorized representative, the responding party and authorized representative; the parties' contact details and a brief description of the complaint.

If the dispute involves individual members of a cooperative, the written complaint shall contain the name of the complainant, the respondent and his/her membership status in the cooperative or position held in the cooperative, and a brief description of the complaint.

SECTION 11. The Preliminary Conference. — The primary purpose of the preliminary conference is to confirm the parties' interest to enter into Conciliation-Mediation. A Notice of Conference is issued in writing and signed by the authorized signatory. The Notice shall indicate the venue, time and date of the conference.

If one or all parties do not appear in the scheduled conference, the Officer shall send another Notice for the parties to appear on the next scheduled conference. Failure to appear without valid cause shall be construed as Refused Conciliation-Mediation. Hence, a Certificate of Non-Resolution shall be issued by the Authority.

SECTION 12. Selection of Conciliator-Mediator. — The Conciliation-Mediation Officer shall assist the disputants to select a mutually acceptable Conciliator-Mediator from the Pool of Conciliator-Mediators. If the disputants cannot agree on a Conciliator-Mediator, the Con-Med Section or Unit may assign a Conciliator-Mediator from among trained and recognized members of its staff.

Upon selection or assignment of Conciliator-Mediator, a conflict coaching session shall commence, unless the disputants agree to reset the conciliation-mediation, within the next three (3) days without need of further notice.

SECTION 13. Training and Recognition of Qualified Members to the Pool of Conciliator-Mediators. —

a) Training. The CDA shall:

1. Determine an appropriate program to train mediators/conciliators and trainors according to international standards (including classroom and practical training);

2. Provide technical assistance on trainings to develop the skills for Conciliation-Mediation; DHAcET

3. Provide opportunities for continuous learning of the Pool of Conciliator-Mediators; and

4. Identify efficient means of providing training nationwide for the immediate availability of the Conciliation-Mediation service.

b) Recognition. The CDA Board of Administrators shall have the sole authority to recognize Conciliator-Mediators for all levels.

SECTION 14. Qualifications of Conciliator-Mediators. —

a) Proficiency in Coop and CDA policies and procedure;

b) Possession of a mature disposition and of good moral character;

c) Commitment to service and Conciliation-Mediation practice;

d) Completion of a training program conducted by CDA or its duly authorized service provider, complying with internationally-accepted training standards; and

e) Successful accomplishment of written and practical assessment administered by CDA or its duly authorized service provider.

SECTION 15. Order of Conciliation-Mediation Proceedings. —

a) Filing of Complaint. The Complainant/s shall file the complaint with the designated Officer of the Conciliation-Mediation Section/Unit. IcDCaS

b) Issuance of Notice of Preliminary Conference. The Officer shall issue a Notice of Preliminary Conference to the parties.

c) Conduct of Preliminary Conference by the Officer. During the conference, the Officer shall encourage the parties to mediate. If both agree, the Officer shall furnish them with a list of Recognized Cooperative Conciliator-Mediators from the CDA staff from which they shall select a Conciliator-Mediator. The name common to their list shall be the Conciliator-Mediator. Upon selection; the Officer shall immediately endorse the complaint to the Conciliator-Mediator.

d) Contacting the Parties for Conciliation-Mediation. The Conciliator-Mediator shall contact the parties to schedule the Conciliation-Mediation Conference. The Conciliation-Mediation proceedings shall immediately commence with a Conflict Coaching session, unless the parties agree to reset the Conciliation-Mediation, within a reasonable period for a valid reason.

e) Conduct of the Conflict Coaching Session. The Conciliation-Mediator may initially meet with the disputants separately in a conflict coaching session, with the aim of clarifying their respective issues and interests. The Conciliator-Mediator then proceeds to clarify the issues, facilitates to generate options and agree on the options that best meet their needs and interests.

f) Signing of the Conciliated-Mediated Settlement Agreement. When the conciliation-mediation is successful in generating an agreement, the Conciliator-Mediator shall prepare a written agreement for the parties' approval and signature. Each shall be provided a copy of the agreement.

g) Accomplishment of the Evaluation Form. To complete the process, the Conciliator-Mediator shall require the parties to fill-up an Evaluation Form for feedback on the effectiveness and quality of the Conciliation-Mediation Process. The accomplished forms shall be forwarded to the Conciliation-Mediation Officer for filing and monitoring.

h) Submission of the Agreement. The signed written agreement shall:

1. Be filed with the Conciliation-Mediation Section/Unit.

2. Be deposited at the option of the parties with the Regional Trial Court where one of the parties resides.

i) If the Conciliation-Mediation is not successful, the Conciliation-Mediation Section/Unit shall issue a Certificate of Non-Resolution, within 5 calendar days from termination of conference. The Certificate of Non-Resolution is necessary if the dispute will be referred to the court.

SECTION 16. Nature of Proceedings. — The conciliation-mediation proceedings shall be conducted in an informal but private setting.

SECTION 17. Duration of Conciliation-Mediation. — The conciliation-mediation proceedings must be completed within 30 days from the date of signing of the Agreement to Conciliate-Mediate by both parties. With valid reason, the proceedings may be extended but not beyond 45 days.

SECTION 18. Confidentiality of Information. — To encourage spontaneity and candor, the proceedings, from the filing of the complaint and all incidents thereto shall be kept strictly confidential, unless otherwise specifically provided by law. All admissions or statements made therein shall be inadmissible for any purpose in any proceeding, nor divulged to any other third person. cTCEIS

Any communication made by one disputant to the Conciliator-Mediator, either during conflict coaching or at anytime during the Conciliation-Mediation proceedings, which are not intended to be known by the other party or by anyone shall not be divulged. Documents, reports, position papers and affidavits submitted by one disputant must not be shown to the other without the consent of the former.

Both parties shall not rely or introduce as evidence in any other proceeding, the following:

a) Views expressed or suggestions made by the other disputant in respect of a possible settlement of the dispute;

b) Admissions made by either disputant in the course of the proceedings;

c) Proposals made by the Conciliator-Mediator; and

d) The fact that the other disputant had indicated his willingness to accept a proposal for settlement.

No transcript, minutes or any record of the Conciliation-Mediation proceedings shall be taken. Any personal notes taken by the Conciliator-Mediator on the proceedings shall be destroyed after the termination of the proceedings. Such transcript, minutes or notes shall be inadmissible as evidence in other proceedings.

SECTION 19. Monitoring. — The Con-Med Units shall ensure that all coops under their jurisdiction shall submit to the Con-Med Section a semi-annual written report on the status of cases. This report shall cover information regarding common issues of disputes, monthly account of complaints received, number of mediated cases per month, report of outcomes and referrals, and an assessment of client satisfaction with the process. This information shall be consolidated by the Con-Med Units for submission to the Con-Med Section at CDA Central.

SECTION 20. Evaluation. — The CDA shall report a semi-annual assessment of its conciliation-mediation program and recommend, if necessary, any changes needed to improve the program.

SECTION 21. Code of Ethical Standards. — The CDA shall enforce a Code of Ethical Standards to guide the Conciliation-Mediation Committees, Conciliation-Mediation Coordinators, Con-Med Sections/Units, Conciliation-Mediation Officers and Conciliation-Mediators in all levels in professional conciliation-meditation practice.

SECTION 22. Training and Education. — The CDA shall:

a) Provide a program for continuing education of coop members for the appreciation and use of conciliation-mediation; and

b) Encourage and support initiatives at the primary and secondary levels for the education of their members. ISCHET

SECTION 23. Advocacy. — The CDA shall:

a) Develop continuous program to encourage the use of Conciliation-Mediation;

b) Ensure that primary cooperatives and union/federations comply with the reportorial requirements and encourage discussion on the benefits and advantages of conciliation-mediation in all general assemblies; and

c) Develop and utilize newsletters, circulars, memos and other modes of communication to the cooperatives and union/federations to highlight the benefits and advantages of conciliation-mediation.

SECTION 24. Transitory Provisions. — The CDA shall develop its education and training program for Conciliator-Mediators and shall likewise establish its criteria for certification and/or recognition of trained conciliator-mediators to the Pool of Conciliator-Mediators. It shall promulgate a Code of Ethical Standards to guide the Conciliation-Mediation Committee, Conciliation-Mediation Officer and Conciliator-Mediators in all levels in professionalizing the conciliation-meditation practices within a period of two (2) years from effectivity of these Guidelines.

The CDA shall provide standardized forms for use of all Con-Med Committees of primary cooperatives and Union/Federations.

SECTION 25. Separability Clause. — If for any reason or reasons, any portion or provision of these Guidelines shall be held unconstitutional or invalid, all other parts or provisions not affected shall remain in full force and effect.

SECTION 26. Effectivity. — These Guidelines shall take effect after the approval by the Board of Administrators and fifteen (15) days after the completion of their publication in the Official Gazette or at least two (2) national newspapers of general circulation. SDIaHE

APPROVED: Board of Administrators Resolution No. 74-S-2007 dated March 20, 2007.

For the Board of Administrators:

(SGD.) LECIRA V. JUAREZChairperson