Definition
What is a Lockout?
A lockout is a strategy used by management in an organizational setting to prohibit employees from entering the workplace and performing their duties during a labor dispute. This action is typically used to compel employees to accept terms in a labor negotiation. The primary objective is to pressure the employees’ union into reaching a labor settlement by halting productivity and, subsequently, wages.
Examples
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Manufacturing Industry Lockout: During contract negotiations between a manufacturing company and its workforce, management may initiate a lockout to pressure the union into accepting a new wage structure. Employees are denied access to the factory and cannot continue their work until an agreement is reached.
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Professional Sports Lockout: In the world of professional sports, a lockout might be used by team owners during collective bargaining negotiations with players’ associations. Team owners might lock out players, effectively suspending all games and reducing the players’ leverage in negotiations.
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Hotel Industry Lockout: Hotel management may impose a lockout during a labor dispute over working conditions, preventing staff from entering the building and performing their duties until the employees’ union agrees to new terms.
Frequently Asked Questions (FAQs)
What triggers a lockout?
A lockout can be triggered by stalled negotiations between management and employees’ representatives, such as a union. It is a tactic used when both parties cannot come to an agreement over key issues like wages, working conditions, or benefits.
How does a lockout differ from a strike?
A lockout is initiated by management to prevent employees from working, while a strike is initiated by employees to halt work as a form of protest against working conditions or other employment terms.
Are lockouts legal?
The legality of lockouts can vary by country and jurisdiction. In many places, they are legal but subject to certain restrictions and regulations. In the United States, lockouts are legal under the National Labor Relations Act (NLRA) provided certain conditions are met.
What is the goal of a lockout?
The main goal of a lockout is to exert pressure on employees and their union to accept management’s terms and conditions during labor negotiations. It serves as a leverage tool for employers.
Can lockouts be used preemptively?
Yes, employers may use lockouts preemptively to avoid a potential strike by employees, thereby gaining a strategic advantage in negotiations.
Related Terms
Strike
A work stoppage caused by the mass refusal of employees to work. Strikes usually occur in response to employee grievances.
Collective Bargaining
A process of negotiation between employers and a group of employees aimed at reaching agreements to regulate working conditions.
Labor Union
An organization of workers formed to protect and further their rights and interests.
Picketing
A form of protest by workers wherein they gather at the workplace to dissuade others from entering during a labor dispute.
Online References
Suggested Books for Further Studies
- “The Battle for the Soul of Capitalism” by John C. Bogle
- “Labor Relations: Development, Structure, Process” by John Fossum
- “Collective Bargaining and Industrial Relations” by Thomas A. Kochan and Harry C. Katz
Fundamentals of Lockout: Labor Relations Basics Quiz
Thank you for engaging with the topic of lockouts in labor relations. This knowledge is essential for navigating and understanding complex labor-management dynamics.
