After reading the extract, explain the main purpose of the CCMA
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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After reading the extract, explain the main purpose of the CCMA

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Historically the labour dispute process in South African had always been considered as expensive,
lengthy and ineffective. The Labour Relations Act (LRA) 66 of 1995 has managed to change this through
the formation of the Commission for Conciliation, Mediation and Arbitration (CCMA). CCMA is an
institution designed to deal with labour dispute. Through the introduction of compulsory arbitration
for specified dismissal and unfair labour practice disputes, the LRA granted the CCMA the mandate of
upholding the objectives of industrial peace and reducing exorbitant legal costs. The Act foresees the
resolution of disputes through the Commission for Conciliation, Mediation and Arbitration (CCMA),
the Labour Court and the Labour Appeal Court. When two parties are in dispute and their case is
presented to the CCMA it is relevant that evidence is provided in resolving the matter.(Whitcher, 2013)
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