AmCham Macedonia Winter 2016 (issue 48) | Page 14

ANALYSIS Can Mandatory Mediation Work in Macedonia? In late July 2015, the Macedonian Parliament introduced obligatory mediation in disputes between companies up to €15.000 in value as a precondition to going to court. The proposed amendments were never opened for public comment and gave just 6 months warning to companies, who will incur increased costs as a result of the change. The Government proposed the amendments to the Law on Litigation Procedure with the explanation that the changes were in alignment with World Bank Doing Business report recommendations and necessary to boost mediators’ role in disputes among companies to reduce the case burden on courts. The reality is that a total of only 22 mediations occurred in the country in the first 7 years after the Law on Mediation was first adopted (2006). This fact has particularly frustrated those in the legal community who argued that companies had nothing to lose by trying mediation before initiating a lengthy court process. And with 155 mediators already licensed in the country1, everything has been ready except willing clients for some time now. And it’s anyone’s guess what mandatory mediation will look 1 Report prepared by European Policy Institute Skopje, „Решете го спорот – да, со медијација“, Проект МАТРА „Поддршка на спроведувањето на медијацијата во Македонија“, Скопје, јули 2013 14   Winter 2016 Issue 48 Only 22 mediations occurred in the country in the first 7 years after the Law on Mediation was first adopted (2006). like in Macedonia. That’s why, since the announcement of the upcoming change, some local law firms report companies rushing to initiate court cases before the change went into effect on February 1st, 2016. The fear is that the change will cause companies to waste additional time and money to obtain a document proving mediation was tried in order to go to court, rather than decreasing the number of cases that reach the courts. And it is questionable whether it is worthwhile to force someone to participate in a negotiation when they are not willing to compromise from the beginning. Of course, Macedonia didn’t invent mandatory mediation. It exists in places like California for family cases, Ontario for many civil disputes and in Singapore. It appears that in all cases, it has caused heated debate. In Italy, a similar policy was rule unconstitutional in 2011, then reintroduced in 2013. Average Gross Salary Paid in Macedonia 2006-15 Average Gross Salary Paid in Macedonia 2006‐15 650 600 550 500 450 400 350 300 250 200 Source: MAKStat database, theme "Labour Market” http://makstat.stat.gov.mk/PXWeb/pxweb/en/ MakStat/MakStat__PazarNaTrud__Plati/125_PazTrud_Mk_bruto_ang.px/?rxid=46ee0f64-2992-4b45a2d9-cb4e5f7ec5ef