Third Conciliators: Business Mediation, New Ways

Corporate mediation is a hot topic, following COVID-19. This event has weakened the national economy, but not only. Relationships between companies, suppliers and service providers are affected by the shutdown. SMALL and medium-sized enterprises (SMEs) are also impacted, despite a gradual but timid recovery. In New Aquitaine, according to an INSEE report in the first quarter of 2020, 40,000 people lost their jobs, directly related to the containment imposed on all. (1) A situation passed on to the activity of companies, which are trying to resume normal activity quickly.

Mediation, the solution to pave the way for recovery

For all sectors, COVID-19 leaves its mark on the activity. According to INSEE,the business sectors in New Aquitaine are still timidly recovering. For many sectors, it remains uneven, closely linked to the constraints and health measures to be put in place. Indeed, for some activities, the measures are more drastic and tedious. Thus, the resumption of construction sites in the building sector is strongly felt with a halving of the decline in activity (-31% compared to -61% in May, during the deconfinement). Other sectors, such as industry, would still be impacted. Aeronautics and automotive are facing a decline in demand, which limits a recovery as frank as in other sectors.

COVID-19 has also impacted the relationship between supplier, supplier and company. Their activities, closely linked, are impacted if one of the links cannot carry out its work. This leads to tensions between the parties, a sign of rupture in a delicate context.

In order to prevent the conflicts related to COVID-19 from reaching the Tribunal, the Montesquieu Circle, AFJE, and the Paris Bar, under the aegis of the Paris Commercial Court, create the Third Conciliators. It is a platform for resolving potentially contentious situations amicably. Situations directly related to the health crisis between several parties. Consular judges, lawyers, legal directors, academics and judicial officers listen to these impacted companies. The device is intended to be confidential, and seeks to restore trust between the various players. A solution to restore optimal relationships, to revive its activity.

Third-party conciliation, a deliberate and common mediation for companies

The Third Conciliators platform is a timely solution, even though many contracts have not been secured. The aim of this initiative is to enable the Parties to find a fair agreement to get back on a good footing. The file is opened online, if the parties agree to find a solution. They pay 100 euros to open their file, and a Third Conciliator takes ties with them. He will be in charge of the case throughout the mediation process. If, at the end of the mediation, the parties reach an agreement, they draft a Memorandum of Understanding which will then be approved by the Paris Commercial Court. This gives it enforceable force. On the other hand, in the absence of agreement, mediation stops and takes a more traditional path, in resolution of disputes.

During the COVID-19 crisis, many avenues were created to support the affected companies. Aid from regions, such as New Aquitaine, allows the most affected companies to be able to pay fixed charges. The salaries of employees are also kept, in part, with partial unemployment. Solidarity platforms also allow companies to equip themselves with equipment for health standards. Masks, hydroalcoholic gel available, disinfectant… These are all solutions that allow the region to resume its activity. In May, the decline in activity was 22% above normal and 12% in June.

Sources:

INSEE 10 July 2020 – Strongly degraded by the health crisis, economic activity is picking up steam

Magnetic Bordeaux – Devices for businesses facing COVID-19 – MAJ 04.06.20 – Bordeaux

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