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 Arbitration is a decision-making process where an independent third party hears the respective cases of parties to a dispute and then makes an award, which they undertake in advance to accept as binding upon them. In statutory arbitration, an arbitrator is allocated to the parties. In private arbitration, the parties agree on the appointment of the arbitrator.
Advisory Arbitrations
This is a voluntary process where the parties choose a third party to hear the respective cases of the parties and then to make a recommendation on the outcome, which the parties can accept or reject.
An identical process to that of arbitration is followed, however the outcome will be an advisory award, and not a final and binding award
Pre-Dismissal Arbitrations (also known as Disciplinary and Performance Arbitrations)
This is a process introduced by the 2002 amendments to the Labour Relations Act. Here a final and binding arbitration is held at the disciplinary enquiry stage by consent of the parties. An external arbitrator is used.
If this statutory route is taken, the CCMA will allocate a commissioner to hold the process at a stipulated cost. Parties can also take the private route, and request an agreed independent party to hold an arbitration at the disciplinary enquiry stage. The outcome is final and binding, subject only to review.
A similar procedure will be used to that of a disciplinary enquiry, however the outcome will be a final and binding award and not a recommendation.
Con-Arbs
This is a process which eliminates the time period between a conciliation and an arbitration. If the conciliation is unsuccessful, the conciliator’s role is changed to arbitrator. The matter proceeds immediately to arbitration.
The 2002 amendments to the Labour Relations Act has attempted to promote this process to expedite the current statutory dispute resolution process at the CCMA. In statutory dispute resolution, the parties are allocated a Commissioner to conduct the con-arb. In private dispute resolution, the parties choose the conciliator/arbitrator.
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