When a collective agreement has been signed the parties to that agreement waive their right to strike and lockout (peace clause). Cases concerning violations of a collective agreement or disagreements relating to the interpretation of a collective agreement can be resolved by referring the case to the Labour Court. According to the TUI and CAPS Acts it is not permissible to resolve such grievances by calling a strike.
Industrial peace does not apply to employers that are not individually or because of their affiliation a employer organization that has negotiates on their behalf, bound by a collective agreement.