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