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Skills Development Act, 1998 (Act No. 97 of 1998)


Constitution of the Local Government Sector Education and Training Authority (LGSETA)


Annexure D : Arbitration Procedure


1. Any party to a dispute concerning the application or interpretation of this Constitution may refer the dispute to the Chief Executive Officer.


2. The dispute may be resolved by a decision of the Executive Committee or Authority supported by not less than 75% of members representing registered trade unions and by not less than 75% of members representing organised employers.


3. If the dispute remains unresolved, then the parties may agree on an arbitrator to arbitrate the dispute.


4. If the parties cannot agree on an arbitrator, then the Chief Executive Officer must select an arbitrator from the panel of arbitrators selected by the South African Local Government Bargaining Council.


5. The arbitrator must first attempt to conciliate the dispute. If conciliation is not possible then the arbitrator must arbitrate the dispute.


6. The arbitrator must conduct the arbitration, in a manner that the arbitrator considers appropriate in order to determine the dispute fairly and quickly, but must deal with the substantial merits of the dispute with the minimum of legal formalities.


7. Subject to the arbitrator’s discretion as to the appropriate form of the proceedings, a party to the dispute may give evidence, call witnesses, question witnesses of any other party, and address concluding arguments to the arbitrator.


8. A party to the dispute may be represented.


9. If the party who referred the dispute fails to appear in person or to be represented at the arbitration proceedings, the arbitrator may dismiss the matter.


10. If a party, other than the party who referred the dispute, fails to appear in person or be represented at the arbitration proceedings, the arbitrator may—
10.1 continue with the arbitration proceedings in the absence of that party; or
10.2 adjourn the arbitration proceedings to a later date.


11. Within 14 days of the conclusion of the arbitration proceedings—
11.1 the arbitrator must issue an arbitration award with reasons, signed by the arbitrator; and
11.2 the Chief Executive Officer must serve a copy of that award on each patty to the dispute.


12. The arbitration award is final and binding on the parties to the dispute.


13. The arbitrator may not include an order for costs in the arbitration award, provided however that in the case of a non-appearance by any party or delay caused by the fault of any party or if the arbitrator is of the view that the party pursuing or resisting the claim did so vexatiously or frivolously or that it had no reasonable prospect of succeeding, the arbitrator may make an appropriate award of costs.


14. An arbitrator may at his or her own initiative or as a result of an application by an affected party, vary or rescind an award—
14.1 erroneously sought or made in the absence of any party affected by the award;
14.2 in which there is ambiguity, or any obvious error or omission, but only to the extent of that ambiguity, error or omission; or
14.3 granted as a result of a mistake common to the parties to the proceedings.