INTERSTATE® BATTERIES, Inc.
DISPUTE RESOLUTION PROGRAM
Background
Interstate Batteries, Inc. cares about its people. We know that even strong and productive employees can
have problems at work … and that even routine differences with the company can get bigger when there
are few resources to help solve them.
Interstate also cares about how the company is doing financially. Employee disputes can be timeconsuming and very costly, particularly if they end up in lawsuits between the employee and Interstate.
In recent years, legislatures have generally encouraged employees to go to court by making it easier for
them to recover money damages from their employers – especially in cases involving a legally protected
right, such as protection from race, sex or age discrimination or sexual harassment. Many employees
who have brought lawsuits, however, have been disappointed with the results. After long delays, years
of worry and interrupted careers, much of what they recover, if anything, has gone to their lawyers. This
money could have been used to the employee’s benefit – for their medical and retirement benefits and
compensation for instance. Fortunately, and as is reflective of Interstate Battery’s commitment to its
employees, the company has avoided this type of litigation in the past.
New Approach
Interstate has set out to find a more effective way (than the traditionally complicated and slow legal
system) to resolve all workplace disputes – one that would benefit both employees and the company.
Over the years, Interstate has had a policy in effect to help employees handle problems through an open
door policy. To make this open door policy better known and improve its effectiveness, Interstate is
adding a more formal dispute resolution program.
For those situations involving legally protected rights (i.e., those that would be enforceable in a
court of law), that for whatever reason cannot be resolved in-house, Interstate Batteries will utilize
a resource outside the company to settle employee disputes. This outside process will involve either
mediation and/or arbitration led by the American Arbitration Association (AAA), an objective third
party. Mediation means presenting your legal dispute to a neutral third party for help in finding a
solution; arbitration means presenting your dispute to a neutral third party for a final decision.
The American Arbitration Association (AAA) is a public service, nonprofit organization that offers a
wide range of dispute resolution services to private individuals, businesses, associations and all levels of
government. It handles approximately 60,000 cases each year and has access to over 50,000 neutral
experts who can hear and decide cases.
Mediation and arbitration through AAA can:
• provide quick and fair resolution of your legal dispute.
• protect your work relationships instead of disrupting them.
• prevent excessive spending on lawyers’ fees.
The new approach is the Interstate Batteries Dispute Resolution Program. As of January 1, 1996,
this Dispute Resolution Program is the SOLE AND EXCLUSIVE means for resolving any disputes
arising from prospective or actual employment with Interstate. Applying for or continuing
employment with Interstate constitutes your acceptance of the Dispute Resolution Program as the
only method you will use to resolve a conflict with the company.
STEP ONE – OPEN DOOR POLICY
When difficult situations happen at work, you may feel there is no place to go to resolve them. How can
you go to your supervisor if your problem is with your supervisor? Where can you take your problem
that will not threaten your job? You talk to your friends and family who may offer sympathy and advice
but no real answers. Tensions build up at work and the problem gets bigger.
Working out problems when they’re small often prevents the misunderstandings that occur when
communication breaks down. When people stop talking to each other, they focus on their anger and what
they imagine to be true instead of the facts. You and Interstate stand the best chance of resolving
problems by tackling them together through the Open Door Policy ... before they become crises.
What is the Open Door Policy?
The Open Door Policy guarantees that doors are open to you within Interstate Batteries. It is a voluntary
process that allows you to talk to your immediate supervisor or to a higher level of
management…without fear of retaliation. Although you are encouraged to solve your problem at the
lowest possible level, you may take it as far up the chain of command as needed. The “steps” of the
Open Door Policy are as follows:
• An employee who has a complaint is urged to take it first to their immediate supervisor unless the
subject of the complaint is the conduct of their immediate supervisor.
• If the employee’s immediate supervisor cannot resolve the complaint, or if it is the immediate
supervisor’s conduct that is the cause for the complaint, the employee should then talk with their
manager.
• If the manager is unable to resolve the complaint, the employee and the manager should discuss the
problem with the Vice President of Talent Group. At this time, the employee should put the complaint
in writing.
• If the Vice President of Talent Group is unable to resolve the complaint, the employee should submit
the complaint, in writing, to a member of Executive Management.
Reasons to Use the Open Door Policy
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Management is committed to it.
It makes early on-site problem-solving more likely.
It encourages you to give feedback to management.
You get your questions answered and learn about your options.
You have instant support.
It’s flexible and informal.
Retaliation is forbidden.
STEP TWO – MEDIATION
If your dispute is based on legally protected rights, you may feel an outside process, such as mediation, is
necessary to resolve it. For many people, just presenting their case to someone outside Interstate who is
not involved in their problem is all that is needed to break a stalemate. Remember, however, those
matters that would not be legally enforceable in court are not subject to mediation. Interstate may,
nevertheless, at its option, proceed with mediation if the employee desires, even if such action would not
involve a legally recognizable claim in court.
What is Mediation?
Mediation is often the most straightforward and cost-effective method of examining and resolving
disputes. It is a meeting in which a neutral third party, called a mediator, helps you and Interstate
come to an agreement. Mediation helps primarily by opening up communication and by coming up
with options. It is a nonbinding process. That means, the mediator can make suggestions, but you
and Interstate are responsible for resolving your dispute. All mediations in this Program will use an
AAA mediator as the neutral party. In cases involving legally protected rights, the parties ma y agree
to bypass this option and move directly to Step 3, Arbitration, for a final decision.
Requesting Mediation
Keep in mind most disputes can be resolved in Step 1 – Open Door Policy. On the rare occasion a dispute
goes to Step 2 – Mediation, the employee will need to pay a $250 fee. Interstate Batteries will pay any costs
that exceed this $250 fee (The cost of mediation usually approximates $1,000). To request mediation, you
must submit this request, in writing, to the Vice President of Talent Group, accompanied by your $250 check
made payable to the “American Arbitration Association.” The Talent Group shall then immediately submit a
request for mediation to AAA. Once you have made the request and paid your fee, Interstate Batteries will
participate with you in the mediation process. Every effort will be made to commence and complete
mediation within sixty (60) days of the request. Scheduling of the mediation, however, will be left
up to AAA.
• Interstate, in lieu of mediation, may opt directly to proceed with Step 3-Arbitration. In such event,
Interstate Batteries shall refund the mediation fee submitted by the employee. Further, the arbitration
fee sharing arrangement outlined in Step 3 shall be modified so that Interstate shall pay three-fourths of
the arbitration filing fee, with the employee paying the remaining one-fourth of that fee. The employee
may also opt to proceed directly with Step 3-Arbitration, but in that event, the arbitration fee sharing
arrangement shall not be modified.
Typical Mediation Steps
• When you or Interstate request mediation, AAA will assign a professional mediator to the dispute.
• The first meeting date is arranged after the mediator is selected.
• You and a company representative will meet with the mediator who will guide your discussion
and help you work out your differences. You choose whether you wish to have independent
counsel at your own expense.
• The mediator may meet privately with you and Interstate to try to develop a better understanding of the
problem, and help you solve it.
• Mediation is almost always successful in helping you reach
a settlement.
• If not, you or Interstate may wish to take those disputes involving legally enforceable rights to
arbitration for a final and binding decision.
Key Advantages of Mediation
Because mediation has proven highly successful in the majority of cases, it is generally the outside
resolution process of choice. It offers the following advantages:
• Provides the opportunity for both sides to tell their story.
• Lets both sides have a third party perspective.
• Helps reduce feelings of hostility.
• Helps separate emotional issues from factual issues.
• Solution that is good for both you and Interstate.
STEP THREE – ARBITRATION
If the dispute involves a legally protected right, such as protection against age, race, sex discrimination,
or sexual harassment, and has not been resolved in Steps 1 or 2, you or Interstate may request arbitration.
While you do not have to proceed through each of the options in their exact numerical order, the
Program is designed with multiple steps to maximize the possibility of resolution prior to Step 3.
Again, all outside dispute resolution processes in this program (i.e., mediation and arbitration) will use
neutral parties provided through the American Arbitration Association.
What is Arbitration?
Arbitration is a process in which a dispute is presented to a neutral third party, the arbitrator, for a final
and binding decision. The arbitrator makes this decision after both sides present their arguments at the
arbitration hearing. There is no jury. If you win, you can be awarded anything you might seek through a
court of law.
The neutral party, AAA, runs the proceedings which are held privately. Since 1926, AAA has handled
hundreds of thousands of cases. Though arbitration is much less formal than a court trial, it is an orderly
proceeding, governed by rules of procedure and legal standards of conduct.
Requesting Arbitration
If you choose to submit your dispute (involving a legally
protected right) to arbitration, you may do so by taking the following actions:
1. Call AAA at 972/702-8222, fax 972/490-9008, or write to AAA at 1440 Two Galleria Tower, 13455
Noel Road, Dallas, Texas 75240-6620, notifying AAA of your demand for arbitration.
2. AAA will notify you of the cost of instituting the arbitration of your dispute (i.e., the filing fee for
the arbitration process).
3. You will be responsible to pay one-half (1/2) of the arbitration filing fee. Interstate will pay the
remaining one-half (1/2) of that fee. However, in the event Interstate opts to move directly from Step
1 to Step 3, foregoing the mediation step, the company shall pay three-fourths (3/4) of the fee, and
you will pay one-fourth (1/4) of that fee. At the time of implementation of the Program that fee
approximates $500. The fee is subject to change by AAA. Your check shall be made payable to
AAA and shall accompany the document filed with the AAA which formally commences the
arbitration of your dispute.
4. Once the arbitration has been formally commenced, Interstate shall pay AAA the remaining portion
of that fee.
Remember, you may move to Step 3 directly, after Step 1-Open Door Policy or if mediation through AAA
proves unsuccessful – as long as your dispute involves a legally protected right.
The Role of Lawyers
The company has access to legal advice through its legal department and outside lawyers. You may
consult with a lawyer or any other adviser of your choice.
You are not required, however, to hire a lawyer to participate in arbitration. If you choose not to bring a
lawyer to the arbitration hearing, Interstate will also participate in the hearing without a lawyer. If you
will not utilize a lawyer at the hearing, you must notify Interstate at least thirty (30) days prior to the
hearing. Otherwise, the company is free to use the services of a lawyer at the hearing.
Typical Arbitration Steps*
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A party involved in a legal dispute files a demand for arbitration with the AAA Dallas office.
The arbitration filing fee is shared.
AAA offers a list of qualified candidates.
Each party numbers the list in order of preference.
An arbitrator is selected based on the parties’ preferences.
AAA arranges a hearing date at a convenient location within Dallas County.
Limited discovery (a process of gathering information)
about the employee’s and the company’s respective
positions is completed.
8. At the hearing, testimony is given and documents exchanged.
9. Witnesses are questioned and cross-examined.
10. The arbitrator issues a final and binding decision.
11. Copies of this decision are sent to both parties.
* The complete set of rules governing the arbitration proceedings
are contained on the company’s E-mail system under the “Shared Folders” file and in the Talent Group
under the title: “Dispute Resolution Plan and Rules.” You may print a copy off the Shared Folders file
or you may request a hard copy, at no cost to you, by notifying the Vice President of Talent Group of
your request. You will automatically be provided a hard copy in the event you demand arbitration.
Arbitration Makes Sense
• Quick Resolution – You can expect a quick resolution of your problem. That means weeks or months
instead of years in the legal system. This benefits everybody.
• Keep your Recovery – Interstate shares the cost of mediation and arbitration, and in fact, pays the
greater share of those costs. In the case of arbitration, Interstate may pay the greater share in
implementing the action, which would not occur in litigation. Also, if you choose to enter arbitration
without a lawyer, you will be able to keep everything you recover rather than sharing your award with
a lawyer.
• Independent Third Party – You can benefit from the objectivity and experience of an outside, neutral
mediator and/or arbitrator.
• Get Back What You Lost – Arbitration can restore to you what you had lost. Under the terms of the
Program, an arbitrator can award you anything you might seek through a court of law.
• Preserve Work Relationships – A quick and impartial resolution through arbitration may make it easier
for you to stay on the job than years of costly, frustrating court battles.
Effective January 1, 1996, Interstate Batteries will adopt this three-option program as the exclusive means of
resolving workplace disputes for legally protected rights. That means, if you apply for, accept or continue your
job at Interstate Batteries after that date, you agree to resolve all legal claims against Interstate Batteries
through this process instead of through the court system. Use of Step 1 of the program for cases not involving
legal rights is voluntary. The company reserves the right to refrain from participating in Step 2 in cases which
do not involve legally protected rights and either party may skip Step 2 in those cases which do involve legally
protected rights. Step 3 shall not occur for those cases which do not involve legally protected rights.
QUESTIONS AND ANSWERS
1. How does the strengthened Open Door Policy differ from the old Open Door Policy?
It has become Step 1 of a three-step dispute resolution process. Both old and new Open Door
Policies call for resolving workplace disputes through the chain of command. Helping employees
resolve their problems at work will be part of every manager’s and supervisor’s job.
2. What do I do if the supervisor I approach ignores the Open Door Policy?
If the first person you approach under the Open Door Policy is unresponsive, proceed immediately to
another level of supervision in the chain of command.
3. What happens if my supervisor starts to make things difficult for me after I complain?
Interstate Batteries encourages you to take full advantage of its programs and policies. The company
forbids retaliation against you for using the three-step program. If you feel that a supervisor is
retaliating against you for using any or all of the options, you should take it to a higher level in the
chain of command and/or to the Vice-President of Talent Group. The Vice President of Talent
Group will help you decide on a strategy for handling your problem or refer you to someone else in
the chain of command.
4. Can I use the Interstate Batteries Dispute Resolution Program to solve any problem that happens at
work?
You may use Step 1, the Open Door Policy to address any concerns, questions or problems you may
have with your supervisors or coworkers.
Steps 2 and 3, the outside resolution processes through AAA, can be used to resolve only those
problems or disputes involving legally protected rights, such as: discrimination for age, sex or
religion; on-the-job harassment; or being asked to commit unlawful acts. Whether or not a dispute
truly involves a legally protected right may also be determined at this time. Interstate may, however,
at its option, proceed with Step 2-Mediation, if requested by you, even if the dispute does not
involve a legally protected right, but this action is purely voluntary by Interstate.
5. How does arbitration differ from a court trial?
With arbitration, the decision is final; except under rare circumstances, it may not be reversed by
subsequent proceedings. With a court trial decision, an appeal may be filed causing lengthy delays.
Also an arbitration proceeding is usually much more informal than a case in court. The arbitrator
will be a lawyer with an employment or labor law background, who is licensed to practice law in
Texas. The proceeding is held in private offices instead of in a public courthouse. The biggest
difference, however, lies in the reasonable cost of arbitration. Because arbitration is faster and less
formal, it ends up costing much less to prepare the case.
6. What’s the difference between mediation and arbitration?
Mediation is a process in which those involved in a dispute try to resolve it with the aid of a neutral
third party, the mediator. In this process, the mediator helps to open up lines of communication but
does not hand down a final decision. With arbitration, a dispute is submitted to an outside, neutral
party for a final decision which cannot be overturned by the courts, except in rare circumstances.
7. Do you have to go through mediation before proceeding
to arbitration?
No, in cases involving legally protected rights, you or Interstate may elect to proceed directly from
Step 1-Open Door Policy, to Step 3-Arbitration for a final, binding decision.
8. Does the Program require me to go through each step completely before going through the next one?
The steps are arranged in the most logical pattern applicable to most disputes. However, a number of
factors can effect the order of the steps you wish to utilize including:
• Whether it involves a legally protected right.
• Your own preference.
• Interstate’s preference.
• Just plain common sense.
9. What happens if I file a lawsuit against Interstate Batteries for a workplace dispute?
If you file a lawsuit, Interstate Batteries will ask the court to dismiss the case and refer it to the
Dispute Resolution Program. Interstate Batteries will also seek to recover its attorneys’ fees incurred
from taking that action.
10. Is there any limit on the amount of award I can win through arbitration?
Only to the extent those limits exist in law. The arbitrator has the same authority as a judge or jury in
making awards to employees. That means in arbitration, it’s possible for you to recover anything you
might seek through the court system.
11. What can I do to seek relief if I believe my legally protected rights have been violated?
If you cannot resolve your dispute within the company, you may request an outside process through
AAA and share in the expense of that process. The arbitrator will determine if a legally protected
right has indeed been violated, and if so, the amount you recover.
12. What happens if I’m terminated or laid off from Interstate Batteries? Does the Dispute Resolution Program still
apply to me?
If you are terminated or laid off from Interstate, you must still resolve all legal claims against Interstate
Batteries through the Dispute Resolution Program instead of through the court system. All three steps of
the program would be available to you.
13. What if the cause of my dispute is an on-the-job injury?
If you ever need help with a problem regarding your claim for workers’ compensation or
unemployment insurance benefits, you could contact the Talent Group at Interstate Batteries.
If you are not satisfied with their solution, or if you believe you have been fired, laid off or unjustly
treated because you filed a claim for on-the-job injury, you would settle your dispute through the
Dispute Resolution Program.
14. Do I have to have an attorney during this dispute resolution process?
No. You may have an attorney assist you with any and all matters in this process, but you are
not obligated to hire one. In fact, if you choose not to have an attorney act on your behalf during
the arbitration hearing, Interstate will not have an attorney during the hearing either. But, you
must notify the company of your election not to use an attorney at the hearing no less than thirty
(30) days prior to the hearing. If you fail to do so, Interstate may employ an attorney at the
hearing.
CONCLUSION
Our Dispute Resolution Program works for you and the company in several ways. It strengthens
Interstate Batteries traditional Open Door Policy by formalizing a plan to keep communication open.
It promotes fair treatment of all employees by serving notice to supervisors that their decisions may
be reviewed by higher management.
It saves all of us the financial and emotional expense of a long court battle which can weaken working
relationships and careers.
It encourages teamwork by providing a system for working out differences within the company.
Working together as a team – that is productive, efficient and responsive to our customers’ needs – is the
key to remaining a successful force in the industry.