Arbitration means the appointment of an independent person to act as an adjudicator (or judge) in a dispute to decide on the terms of a settlement. Both parties in a conflict have to agree on who the arbitrator should be and that the decision of the arbitrator will be binding on them all. Arbitration differs from mediation and negotiation in that it does not promote the continuation of collective bargaining: the arbitrator listens to and investigates the demands and counter-demands and takes over the role of decision-maker. People or organizations can agree on having either a single arbitrator or a panel of arbitrators whom they respect and whose decision they will accept as final in order to resolve the conflict.
Conciliation: The dictionary defines conciliation as "the act of procuring goodwill or inducing a friendly feeling." South African labor relations legislation provides for the process of conciliation in the workplace, whereby groups who are in conflict and who have failed to reach an agreement can come together once again to attempt to settle their differences. This is usually attempted before the more serious step of a strike by workers or a lock-out by management is taken, and it has been found useful to involve a facilitator in the conciliation process. Similarly, any other organization (e.g., sports club, youth group, or community organization) could try conciliation as a first step.