All About People

The Post Office, scandal which has hardly been out of the news in the first half of 2024, has captured the nation’s attention. The gripping, high-impact real-life story appeared in everyone’s living room in the form of an ITV with mini-series Mr Bates vs The Post Office. The series was brilliantly cast with outstanding performances by many actors, especially Toby Jones and Julie Hesmondhalgh. The unjust treatment of hundreds of sub-postmasters was, the Post Office claimed, mitigated by mediation was covered in the third episode. It was clear that what the Post Office had proposed and created was not a method of mediation but an inquiry panel attempting to bully sub-postmasters into submission. The Post Office’s version of mediation was neither fair nor conciliatory.

Alan Bates and the sub-postmaster group’s intention was to seek justice, proof that the Post Office and Fujitsu’s Horizon system was faulty and for sub-postmasters to be recombined as victims of the system, not criminals. Mr Bates and the sub-postmaster group agreed to go along with The Post Office mediation scheme in the spirit of goodwill. 

Mr Bates vs The Post Office failed to explore the importance and benefits of properly constituted mediation. 

The founder and director of All About People, Geoffrey Milton, highlighted that while this increased awareness of mediation, via the ITV series, was beneficial, the approach taken by the Post Office was very far from the moderated and considered practices used every day by mediation professionals and organisations.

What is mediation? A reminder.

Mediation is a process whereby one or more impartial third-party professionally trained mediators assist those involved in a dispute to move ahead and on issues of conflict and agree new behaviours and outcomes. It is, more of than not, a successful method of resolving disputes, aiming to circumvent the stress, complexities and cost of litigation.

What happened?

The mediation between the Post Office and sub-postmasters was a significant aspect of a prolonged and widely publicised dispute related to the Horizon IT system. This system was implemented by the Post Office in 1999. Sub-postmasters, responsible for local post offices, noticed discrepancies and shortages in their accounts, attributing them to issues with the Horizon system as soon as Horizon was launched. The Post Office blamed the sub-postmasters for all shortfalls, resulting in financial losses, mental torture, job dismissals, legal actions, and in more than a few instances, the incarceration for suspected theft and fraud.

Attempts were undertaken to settle disputes through mediation, but a model of good mediation practice was not followed.

In 2016, over 550 sub-postmasters brought a group litigation order (GLO) against the Post Office, claiming that the Horizon system was flawed and had caused financial discrepancies for which they were unfairly blamed. The case went to the High Court, and in December 2019, the court ruled in favour of the sub-postmasters. The court found that the Horizon system contained numerous bugs, errors, and defects, and that the Post Office had acted in an oppressive manner when dealing with sub-postmasters. Following the court's judgment, the Post Office agreed to settle the case, resulting in a £57.75 million settlement to be distributed among the sub-postmasters involved in the litigation.

What went wrong?

In August 2013 the Post Office admitted that a “… hope of mediation was to avoid or minimise compensation” – a clear view which showed the intent of the mediation from the side of the Post Office, was not in anyway, to resolve the conflict and, at best, would be offered to sub-postmasters who would agree to receive a “pat on the head and a token payment”.

Why did mediation fail?

‘When used in a professionally structured way, mediation is a highly effective form of dispute resolution’ explains Geoffrey. ‘Mediation is much more than a cuddly process but a structured way of drawing issues to the fore, discussing and considering them and then attempting to reach agreed and acceptable resolutions for both parties. This is not what occurred in relationship to the Post Office and its sub-postmasters’ says Geoffrey. ‘A willingness to understand the other party’s position, interests and needs and to reach a mutually agreed resolution is the keystone for effective mediation’.

‘As a mediator it is thrilling to observe people who have been locked in conflict to begin to solve their own disagreements sharing ideas and options and agreeing on what we can agree on! The magic element of successful mediation is that as solutions to conflict form and agreed, the mediator becomes less and less interventionist and more of a moderator’.

‘Mediation offers significant benefits’ says Geoffrey. He recommends considering it as the primary solution for disputes, in all contexts, including civil, commercial and the workplace. 

The advantages include:

• Avoidance of unnecessary legal cost and resources.
• Reducing the risk of harm and aiding in rebuilding relationships.
  
• Implementing an 'Early Resolution Framework' in organisational policies.
• Focusing on the parties involved in resolving disputes.
• Following the principles of restorative justice.
• Preventing issues from escalating.
• Addressing mental health concerns.
• Resolving between 80-90% of mediations with a settlement.
• Mediation is a proven method for resolving conflicts.

Get in touch…

For a free, impartial and confidential discussion about the benefits of mediation, please get in touch and we will help you navigate your options and next steps.

Here at All About People, we have a wealth of experience handling both workplace, employment, civil and commercial mediation. 

We are here to help you reach a speedier resolution at a fraction of the cost of using litigation or other formal procedures. Please get in touch to discuss how we can assist you.