DRDSNHS CONSUMER COOPERATIVE

MEDIATION AND CONCILIATION PROGRAM

Pursuant to the provision of Article 121 of Republic Act No. 6938 - An Act to Ordain a
Cooperative Code of the Philippines, the DLSUCC-Mediation Committee hereby
promulgates the following procedures in the conduct of mediation and conciliation, under the
said article to wit:

“Art. 121. Settlement of Disputes. - Disputes among 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 bylaws
of the cooperative, and in applicable laws. Should such a conciliation/mediation proceeding fail,
the matter shall be settled in a court of competent jurisdiction.”

The objective of these procedures is to be able to resolve any issue or dispute in a speedy and
inexpensive way.

SECTION 1. Title. - These procedures shall be known as the DRDSNHS CONSUMER

COOPERATIVE are based primarily on the Revised Procedures for Mediation and
Conciliation of Cooperative Disputes in the Cooperative Development Authority.

SECTION 2. Definition of Terms.

a. Mediation is a process of resolving disputes with the aid of a neutral person who help
parties identify issues and develop proposals to resolve their disputes. Unlike arbitration, the
mediator is not empowered to decide disputes.1

b. Negotiation. Intercourse between two or more states conducted for the purpose of affecting
an understanding between them; or the conduct of discussions between the parties to a
dispute designed to produce a settlement of the dispute. 1

c. Conciliation. The process of referring a dispute to a commission of persons who are

empowered to examine the facts and to submit a report containing recommendations for the
settlement of the dispute: their recommendations or proposals, however, do not have the
bending effect of an award or judgment, as is the case in arbitration. 1

d. Arbitration. The submission of a disputed matter for decision to private, unofficial persons,
selected in a manner provided by law or agreement. There are two kinds, compulsory or
voluntary. Compulsory exists where the consent of one of the parties is enforceable by
statutory enactment (Labor Code) either in a Court of law or before a justice of peace.
Voluntary where it is affected by mutual agreement of the parties by means of a rule of court
or otherwise.1

e. Settlement or Agreement – shall refer to the compromise, which the parties in the
mediation/conciliation conference have agreed upon.2

1
MATERIALS ON MEDIATION AS A SPEEDY AND INEXPENSIVE ALTERNATIVE PROCEDURE FOR SETTLING DISPUTES,
REFERENCE AND RESEARCH BUREAU LEGISLATIVE RESEARCH SERVICE
2
REVISED PROCEDURES FOR MEDIATION AND CONCILIATION OF COOPERATIVE DISPUTES IN THE COOPERATIVE
DEVELOPMENT AUTHORITY
SECTION 3. Commencement of Action. – Any action for mediation or conciliation may be
commenced upon receipt of written request from either or both parties.

SECTION 4. Request for a dialog. – A written request for a dialog may be filed with the
cooperative office. It shall contain the following:
a. The name/s, address/es, contact details of the requesting party/ies
b. The name/s, address/es, contact details of the requested party/ies.
c. For the sake of confidentiality, the issue and subject matter of the controversy will
not be written in the request.

SECTION 5. Grounds for complaint for Mediation and/or Conciliation. – The issues
considered to be the subject for mediation/conciliation:
a. Matters involving the internal affairs of the cooperative, such as but not limited to:
(1) the rights and privileges of members;
(2) the rules and procedures for meetings of the General Assembly, Board of
Directors, or the different cooperative committees;
(3) the rules and procedures for the election and qualifications for officers,
directors or committee members;
(4) the allocation and distribution of surpluses and reserves; and
(5) all other matters involving the internal affairs of the cooperative that the
Authority may deem vital to the operations of the cooperative.
b. For disputes between cooperatives, such other matters that may involve the area of
operations of the cooperatives and disputes between cooperatives.

SECTION 6. Matters Not Cognizable Under These Procedures. – The following are not
cognizable for mediation and conciliation conferences and hence cannot be the subject of any
amicable settlement.
a. Violation of Article 48, R.A. 6938 (Dealings of Directors, Officers or Committee);
b. Violation of Article 49, R.A. 6938 (Disloyalty of a Director);
c. Violation of Article 50, R.A. 6938 (Illegal Use of Confidential Information);
d. Violation of Article 84, R.A. 6938 (Right to Examine);
e. Matters involving the grant and exercise of a franchise, license or certificate of
public convenience or necessity as stated in Article 98, paragraph (2) of R.A.
6938;
f. Violation of Article 114, R.A. 6938 (Prohibition);
g. Non-compliance with other laws as stated in Article 119, R.A. 6938;
h. Violation of Article 124, R.A. 6938 (Penal Provisions);
i. Issues which are criminal in nature cognizable by the regular and/or special courts;
and
j. Other matters which fall under the administrative and regulatory functions or
matters that pertain to compliance with mandatory requirements of the law and
related issuances.

SECTION 7. Invitation. – Upon receipt of such request for a dialog, an invitation shall be
issued by the MEDIATION AND CONCILIATION COMMITTEE as the case may be,
asking the party/ies being requested to file their comments/answers thereto within fifteen (15)
days from the receipt of the invitation.

SECTION 8. The Dialog. – Upon receipt of the comments/answers from the party/ies being
requested to talk with, the MEDIATION AND CONCILIATION COMMITTEE as the case
may be, shall issue a
notice of conference to all parties concerned stating the date, time and venue of the
conference which is the cooperative office.

SECTION 9. General Preparations. – (a) The mediator/conciliator shall have the following
documents at his disposal during the said conference.
a. A copy of the 1987 Constitution;
b. A copy of R.A. No. 6938, R.A. 6939, and the Implementing Rules;
c. A copy of these Procedures and other pertinent issuances of the Cooperative
Development Authority;
d. A copy of the cooperative’s articles of cooperation and by-laws; and
e. Other documents that may be deemed necessary for the conference.

(b) The venue where the conference is to be held must be comfortable to all so that
the atmosphere shall be conducive to the settlement of disputes.

(c) A prayer may be said before the conference to ask for Divine intervention.

SECTION 10. Purpose of Conference. – In the conference, the mediator/conciliator shall

make it clear that the purpose of the conference is to see whether any settlement or agreement
may be reached between the parties after a thorough discussion of the issues.

SECTION 11. Conduct of Conference. – The following rules shall be observed:

(a) Parties are required to appear personally during the conference without the
assistance of counsel.

(b) A mediation/conciliation conference is not judicial proceeding per se. Hence, the
technical rules and procedures shall not be applicable in such cases.

(c) The conduct of the conference shall be non-adversarial in nature and shall proceed
with the end in view of settling any cooperative dispute.

(d) All parties involved or interested in the dispute shall be afforded the opportunity to
ventilate their views concerning the dispute.

SECTION 12. Confidentiality of Records. The mediation proceedings and all incidents
thereto shall be kept strictly confidential, unless otherwise specifically provided by law, and
all admissions or statements made therein shall be inadmissible for any purpose in any
proceeding.1

SECTION 13. Recess and Suspension. – The conference may be recessed from time to time
in order for the parties to consult with one another. It may also be suspended from day to day
until the positions of both parties on all issues are properly ventilated and exhausted.
SECTION 14. Settlement or Agreement. – Once all the issues have been ventilated and
addressed and the parties have reached an agreement:

(a.) The agreement shall be reduced in writing and attested to by the

mediator/conciliator.

(b) The agreement shall be clear and concise and must contain all points of the
parties’ understanding. Extra care must be taken in drafting the Agreement in
order to minimize doubtful or vague interpretations that might result to further
disagreement or worsening of the dispute.

(c) Copies of the Agreement shall be furnished to the parties at the soonest possible
time for their own records.

SECTION 15. Certificate of Non-Resolution. – A Certificate of Non-Resolution shall be

issued on the following grounds:

(a) In the event that after the holding of the conferences, and the disputes have not
been resolved;

(b) If no mediation or conciliation conference succeeds within three (3) months from
the filing of the written request/complaint;

(c) If no conference succeeds due to the non-attendance of the respondent;

(d) Breach of terms and conditions in the amicable settlement upon receipt of notice
from either or both parties.

SECTION 16. Effect of Issuance of Certificate of Non-Resolution. – The issuance of

Certificate of Non-Resolution shall be the basis for the filing of any action before the proper
courts.

SECTION 17. Non-Appearance of the Complainant. – If for no justifiable cause, the

requesting party fails to appear, after two (2) consecutive invitations, the dispute shall be
disposed of through an appropriate resolution.

SECTION 18. Construction. – These rules shall be liberally construed in order to promote the
growth and viability of cooperatives, preserve harmony and instill the cooperative way of life
within and among cooperatives and to achieve a just and expeditious resolution of every
dispute brought before the mediation and conciliation committee.

SECTION 19. Repealing Clause. – All rules, regulations, issuances and the likes which are
contrary to or inconsistent with any of the provisions of these procedures are hereby repealed.

SECTION 20. Effectivity. – These procedures shall take effect upon the approval by the
BOARD OF DIRECTORS of DRDSNHS CONSUMER COOPERATIVE.

DISCLAIMER: Most of the sections are lifted from: Revised Procedures for Mediation
and Conciliation of Cooperative Disputes in the Cooperative Development Authority.