ECONOMIC EFFICIENCY OF MEDIATION IN LABOR DISPUTE RESOLUTION: COST-BENEFIT ANALYSIS
Keywords:
mediation, labor disputes, economic efficiency, cost-benefit analysis, litigation costs, labor productivity, employee turnover, alternative dispute resolution, organizational conflictsAbstract
The article analyzes the economic efficiency of mediation as an alternative method for resolving labor disputes. Direct and indirect costs associated with labor conflicts are examined, including litigation expenses, productivity losses, employee turnover, and impact on workers’ mental health. Based on empirical data from the UK, USA, and Turkey, a comparative analysis of litigation and mediation costs is conducted. Methods for evaluating the economic efficiency of mediation are considered, including cost-benefit analysis, return on investment (ROI) assessment, and calculation of prevented losses. Special attention is paid to the long-term economic effects of mediation, including preservation of employment relationships, improvement of organizational climate, and reduction of reputational risks. Recommendations for evaluating the economic efficiency of mediation in Uzbekistan’s context are formulated.
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