employee protection, dismissing troublesome employees can lead to a long process of
consultation with the authorities and even litigation, for example where an employee sues
their company for unfair dismissal. Defending an action like this is of course costly and
a distraction from a company's normal business.
Labour-management conflict in the form of tactics such as strikes and go-slows can also be very expensive and time-consuming. The goodwill of a company's customers,
built up over years, can be lost very quickly when they are hurt by such a dispute. But
there are sometimes cases where the public sympathize with the employees and don't
mind the disruption. Both sides may put a lot of effort into presenting their case and gain-
ing public sympathy with the use of advertising, public-relations firms, and so on. Many
countries have legislation with compulsory cooling-off periods before strikes can begin,
official procedures for arbitration between the two sides, and so on.
In dealings between companies, supplier-customer relationships can degenerate
into conflict. Conflict seems to be endemic in some industries, for example construction,
where contractors are often in dispute about whether the work has been performed prop-
erly or whose responsibility a particular problem is. This can lead to protracted legal pro-
ceedings.
More and more companies in the US are specifying in contracts that any disputes
should be settled using alternative dispute resolution (ADR), avoiding expensive legal
wrangling. Specialised organisations have been set up to facilitate this.