PROCESSES involving the Conduct of Mediation Hearing

Operational Guidelines

I. Rationale
Cooperative is composed of individuals with common interests which are strengthened by shared values and principles in the conduct of its business. Yet, conflict among members, officers and the likes, may arise in the pursuit of its objectives. More often, when conflict becomes dispute it threatens the bond between the members, the officers, the management if not manage, turns into an expensive, time consuming legal battle. At the end, relationship has been strained and, at worst, destroyed.

I. Rationale
Republic Act 9520, in conjunction with the Alternative Dispute Resolution or ADR Law of 2004, emphasizes the installation and preferential option towards the use of Mediation as better alternative to litigation. It seeks to draw a win-win solution while preserving valued relationship in the Cooperative. One of the major areas where Mediation is sought for is on conflict between members and the office pertaining payment of their loan obligation. Delinquency is not a laughing matter for it remains a major threat to any cooperative.

I. Rationale
However, there is no clear cut guidelines pertaining its conduct particularly on collection of sum of money especially that it is now made part of the Coop s collection policy to seek mediation hearing first before resorting to litigation. Hence, this operational guidelines is sought for to provide the processes towards more efficient and effective mediation run.

II. Objectives
1. To establish processes involving preparatory phase, actual and post conduct of the mediation hearing; 2. To institutionalized its implementation.

III. Definition of Terms

Mediation is an alternative dispute resolution involving three parties, namely: requesting party, responding party and the neutral third party known as Mediator; Mediator an accredited person either by the Authority or by OCCCI. He/she must have undergone the necessary training of at least 40hour classroom sessions and 40-hour practicum as attested by Senior Mediator/Trainor, and must have passed the written and practicum revalida.

III. Definition of Terms

Senior Mediator refers to a recognized mediator of the CDA and official trainer of OCCCI Mediation Program who oversees the on-going process for accreditation of full pledge in-house mediators; Mediator-in-Training refers to an apprentice who has not complied all the requirements for a full in-house mediator; Mediation Hearing refers to an official conduct of the mediation process involving any cases which have been certified by the Con-Med Coordinator, endorsed by the Area Manager/CEO and duly approved by the Con-Med Committee Chair.

III. Definition of Terms

Mediation Run refers to mediation en masse involving collection sum of money conducted in the branch. Con-Med Coordinator A staff duly appointed by the CEO to coordinate all mediation related activities. Con-Med Committee - composed of three members who are appointed by the board to oversee the implementation, reporting and formulation of program, among others.

III. General Provisions

1. All collection cases must be subject to the inhouse mediation hearing before resort to litigation; 2. The Conciliation-Mediation Committee dispense the following function as specified CDA memorandum:
Formulate and develop the Conciliation-Mediation Program and ensure that it is properly implemented; Monitor Conciliation-Mediation operations (entry of new cases, status of pending cases, performance of Conciliation-Mediation);

III. General Provisions

Submit semi-annual reports to the CDA written fifteen (15) days after the end of every semester; Accept and File Evaluation Reports; Submit recommendations for improvements to the Board of Directors ; and Recommend to the Board of Directors any member of the cooperative for ConciliationMediation Training as Cooperative ConciliatorMediator.

III. General Provisions

3. The Chief Executive Office shall appoint one staff to perform the functions of the Con-Med Committee Coordinator with the following functions:
1. Receive complaints and assist the disputing parties in reducing their complaints in writing; 2. Confirm parties request to participate in ConciliationMediation; 3. Assist parties in the selection of a Conciliator-Mediator; 4. Monitor and report on the outcome of ConciliationMediation conducted by pool conciliator-mediators;

III. General Provision

5. Receive and file the conciliator-mediator s form; 6. Submit to the committee the monthly report summarizing status of all cases processed and the results of the evaluation of the Conciliation-Mediation process; 7. Facilitate the issuance of the Certificate of NonSettlement from any failed or refused ConciliationMediation; 8. Monitor and fill-up the documents on the Conciliation-Mediation process; 9. Send communication to the disputants; and 10.Maintain an updated list of Conciliator-Mediator;

IV. General Provision

4. In the case of a mediation hearing involving any case, not limited to, collection sum of money, a mediator-in-training who have already undergone 16-hours classroom learning and 8 mock-up cases and 3 collection cases may handle a mediation hearing. 5. In the case of mediation run, all mediation-intraining and senior-mediator-in-training who have undergone at least 32 hours classroom sessions and 20 cases may handle the program under the supervision of the Senior Mediator.

IV. General Provision

6. Mediation fees. Whenever mediation hearing or run is sought for, both the requesting and the responding parties shall be required to pay P100 mediation fee to cover expenses and the on-going training of OCCCI in-house mediators. 7. In every Mediation Hearing or Run, official receipt must be within reach to cover actual or on-sight payments.

IV. SPECIFIC PROVISIONS ON MEDIATION HEARING

IV. A. Mediation Hearing

1. Before the Mediation Hearing a. Any member/s of the cooperative that has a complaint constituting a dispute of these Guidelines may file said complaint before the Coordinator b. A non-member may file a complaint before the Coordinator provided it is determined by the Conciliation-Mediation Committee that the dispute, if remained directly affect the operations of the cooperative. c. However, if the complaint filed is against any member of the Conciliation-Mediation Committee, the Board of Directors shall constitute among them a ConciliationMediation Committee for that purpose.

IV. A. Mediation Hearing

d. e. The complaints shall be in writings using the prescribed form which shall be made available in all branches; The Con-Med Committee Mediator shall appoint Con-Med point person who shall accept all complaints and performs the functions as specified below;
The Con-Med Committee Coordinator shall conduct preliminary conference to confirm the parties interest to enter into Conciliation-Mediation. (2) A Notice of Conference shall be in writing and signed by the Secretary of the committee. The Notice shall indicate the venue, time, and date of the conference. (3) If one or all parties do not appear in the scheduled conference, the Coordinator 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-Settlement shall be issued. (1)

IV. A. Mediation Hearing

f. Choice of a mediator. The con-med committee coordinator shall made available the list of mediators within the area for both parties to choose from. They must both agree on who shall mediate their case; g. The Con-Med Committee Coordinator shall then schedule the Mediation Hearing. h. The Venue for the Mediation Hearing may take place inside office where privacy due to the confidential nature of the process shall be assured else a different venue may be set;

IV. A. Mediation Hearing

2. Actual Mediation Hearing a. The Con-Med Committee Coordinator shall provide all the documents needed in the hearing in the following order:
1. Agreement to mediate in triplicate copy 2. Mediation Tracking Form in two copies 3. Compromise/Settlement Agreement Form triplicate copy 4. Certificate of Non-settlement triplicate copy 5. Mediation Report Form two copies 6. Evaluation Form two copies

IV. A. Mediation Hearing

3. After the Mediation Hearing a. The mediator shall turn-over to the ConMed Committee Coordinator all documents; b. The Con-Med Committee Coordinator shall then file/forward all documents, to wit:
Agreement to mediate: 1 for the branch file, 1 for the responding party, 1 for the Con-Med Committee Coordinator

IV. A. Mediation Hearing

Mediation Tracking Form: 1 for the branch, 1 for the MCC Coordinator, 1 for the responding party if mediation hearing is re-set Compromise Agreement: 1 for the branch inside the credit file, 1 for the responding party, 1 for the MCC Coordinator Certificate of non-settlement: 1 for each of the parties, 1 for MCC Coordinator Mediation Report Form: 1 for MCC Coordinator and 1 for CDA Accomplished Evaluation Form: 1 copy for MCC Coordinator

IV. A. Mediation Hearing

C. The MCC coordinator shall submit summative report to the MCC Secretary containing the following: outcome of the mediation: # of cases heard, # of cases settled or not settled, outright payments made, amount of balances of accounts with settlement, overall rating of each participating mediators and others as may be required

IV. SPECIFIC PROVISIONS ON MEDIATION RUN

IV. B. Mediation Run

1. Before Mediation Run.
1. A Branch who wishes to avail Mediation Run shall do the following:
Prepare the list of accounts for mediation with the following priority category: Charge-off accounts, Matured accounts, past-due accounts over 30 days, past-due less than 30 days based on the collection policy. 2. Forward his request to CEO through the AM using prescribed format which contains the name of the borrower, address, account #, amount approved, outstanding balance, past due amount, other receivables such as IR; 1.

IV. B. Mediation Run

1. Before Mediation Run
3. The AM shall be responsible in forwarding approved request to the MCC Coordinator who shall then coordinate with MCC Secretary for signing of mediation notice. 4. Signed notices shall be forwarded to the branch MMC point person for distribution to the concerned individuals. 5. The request for mediation run shall be done at least 15 days before the scheduled run, the letter shall be sent and confirmation is sought 10 days before the actual run;

IV. A. Mediation Run

2. Choice of a mediator. Unlike the Mediation hearing, the mediation run shall be based on the availability of the mediators on-sight. Thus, the MCC Coordinator/Point Person shall make it sure that there is no lull in the entry of disputants; 3. Venue of the Mediation Run. Preferably the venue shall be in private area where confidentiality can be observed. Among possibly settings could be: Parish Center, Covered Court, Private function Area.

IV. A. Mediation Run

4. Ratio Between Requesting Party and Mediator must be observed at 1:1 plus 2 and the Senior Mediator. This means that if there are 5 staff assigned as disputant only 7 mediators shall be sent. The first 5 shall be the primary, the other 2 shall be replacement to provide break. 5. Drum Beating for Maximum Attendance. 10 days before the Mediation Run, the Branch put banner/streamer with the Caption: OCCCI Settlement Day through the Mediation Run Don t Miss it! Then write the Date, Time and Venue. For inquiries call _________________.

IV. A. Mediation Run

6. Major requirements. 1. For an effective Mediation Run, the branch management shall have trained their assigned disputants on the their BATNA (best alternative to negotiated agreement); 2. All disputants must be oriented on handling all cases depending: hence, briefing 3 days before the actual Mediation Run must be made. 3. BATNA to WATNA. All options in the form of demands must be assigned in priority: - Example: # 1. Full payment, # 2. Payment of cash on-sight plus 50% of

IV. A. Mediation Run

6. Major requirements. 4. BATNA and WATNA must be pre-approved by the Area Manager prior to Mediation Run; 5. Short module on negotiation skills must have been conducted by the Branch Manager to his/her staff to strengthen their interest. 6. The following shall be prepared and made available during the mediation run: 1. Credit File duly assigned with reference number; 2. Post payment ledger of the account at least based on end of the month. For example, if the account is due on July 10, the post payment ledger must be for July 31 to give allowance if payment is given after the due date. 3. Coop deposits Data for possible off-setting against savings first, CBU last. 4. Prepared computation for possible re-structuring and the likes.

IV. A. Mediation Run

2. Actual Mediation Run a. The Con-Med Committee Coordinator shall provide all the documents needed in the hearing in the following order:
1. Agreement to mediate in triplicate copy 2. Mediation Tracking Form in two copies 3. Compromise/Settlement Agreement Form triplicate copy 4. Certificate of Non-settlement triplicate copy 5. Mediation Report Form two copies 6. Evaluation Form two copies

IV. A. Mediation Run

3. After the Mediation Hearing a. The mediator shall turn-over to the ConMed Committee Coordinator all documents; b. The Con-Med Committee Coordinator shall then file/forward all documents, to wit:
Agreement to mediate: 1 for the branch file, 1 for the responding party, 1 for the Con-Med Committee Coordinator

IV. A. Mediation Run

Mediation Tracking Form: 1 for the branch, 1 for the MCC Coordinator, 1 for the responding party if mediation hearing is re-set Compromise Agreement: 1 for the branch inside the credit file, 1 for the responding party, 1 for the MCC Coordinator Certificate of non-settlement: 1 for each of the parties, 1 for MCC Coordinator Mediation Report Form: 1 for MCC Coordinator and 1 for CDA Accomplished Evaluation Form: 1 copy for MCC Coordinator

IV. A. Mediation Run

C. The MCC coordinator shall submit summative report to the MCC Secretary containing the following: outcome of the mediation: # of cases heard, # of cases settled or not settled, outright payments made, amount of balances of accounts with settlement, overall rating of each participating mediators and others as may be required.

RESPONSIBILITIES

Responsibilities
1. It shall be the responsibility of the CEO to appoint MCC Coordinator and Branch Point Person as part of the implementation of the Mediation Process; 2. It shall be the responsibility of the MCC Coordinator to:
send duly accomplish letter from MCC secretary to the responding party ; collate all reports from MCC point person and to report the outcome of the Mediation Hearing/Run; coordinate with the Area Manager and the Senior Mediator involving Mediation Run.

Responsibilities
3. It shall be the responsibility of the Branch Manager to:
send the request, train his/her staff and to organize the mediation run prepare budget for the mediation run and to observe simple meals

SANCTION