A 'fair dinkum' attitude was needed to ensure successful dispute resolution between small and large businesses, Australian Competition and Consumer Commission Chairman, Professor Allan Fels, has told the inaugural Round Table on Small Business Dispute Resolution in Canberra today.
"This is a problem area best solved by a self-regulatory approach," he told representatives of business. "This is because the problems arise in the market place and therefore the resolutions should be market-based and market sensitive.
"They should be quick, cheap and effective, so people can restore relationships and get on with their everyday business. While there are encouraging signs of dispute avoidance processes emerging it does require a new 'mind set', particularly by some large corporations and their industry association.
Professor Fels said the new mindset featured:
- a more conscious effort at developing dispute avoidance mechanisms, including more complete and accurate disclosure of at the terms and conditions surrounding franchises or leases;
- the use of 'partnering' to develop a harmonious working relationship between parties to a contract or agreement. 'Partnering' uses structured procedures to define mutual goals, a common statement of objectives, improve communications, identify problems and develop problem-solving and dispute avoidance;
- a readiness for large organisations to employ in-house negotiators with dispute resolution skills; and
- a willingness for both parties to use independent mediation or conciliation to settle any unresolved disputes.
"Taking action along these lines is not only good business sense but is a compliance mechanism for large companies to reduce the risk of breaching the unconscionable and misleading and deceptive conduct provisions of the Trade Practices Act."
Professor Fels said he looked forward to the day when the inaugural meeting of the Round Table was seen as a watershed in small/large business relations.