Difference between strike and lockout
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Strike vs. lockout
A strike is a work stoppage initiated by employees to express a grievance or to enforce a demand during collective bargaining. This action involves a collective refusal to work until specific conditions are met by the employer. Conversely, a lockout is a work stoppage initiated by an employer. In a lockout, management prevents employees from working by closing the workplace or otherwise barring entry. Both tactics function as forms of economic pressure intended to compel the opposing party to settle a labor dispute on favorable terms.[1]
While both actions result in a cessation of operations, their legal definitions and consequences vary significantly under labor laws such as the National Labor Relations Act (NLRA) in the United States. A strike is often viewed as a "bottom-up" move by labor, whereas a lockout is a "top-down" move by management.
Comparison table
| Category | Strike | Lockout |
|---|---|---|
| Initiator | Employees or labor union | Employer or management |
| Primary goal | Improve wages, benefits, or working conditions | Pressure union to accept contract terms |
| Workplace access | Employees choose to leave or picket outside | Employer bars employees from entering |
| Replacement workers | Permanent replacements allowed for economic strikes | Generally limited to temporary replacements |
| Unemployment benefits | Usually disqualified from receiving benefits | Often eligible for benefits in many jurisdictions |
| Control | Workers decide when to start and end the action | Management decides when to stop work |
Types and legal status
Strikes are categorized based on their purpose. An "economic strike" occurs when workers seek higher wages or shorter hours. Under U.S. law, employers can hire permanent replacements for economic strikers, meaning the strikers are not guaranteed their jobs back once the strike ends. An "unfair labor practice strike" is a protest against illegal conduct by the employer. In these cases, workers cannot be permanently replaced and must be reinstated when the strike concludes.[2]
Lockouts are similarly divided into "defensive" and "offensive" actions. A defensive lockout occurs when an employer fears a sudden strike that would cause disproportionate damage, such as a strike during a peak production period. An offensive lockout is used to pressure the union into signing a contract. The Supreme Court of the United States upheld the legality of offensive lockouts in the 1965 case American Ship Building Co. v. NLRB, ruling that lockouts do not inherently violate employees' rights to collective bargaining.[3]
Economic impact and resolution
The economic impact of a strike or lockout falls on both parties. Workers lose wages and may rely on union strike funds, which are often significantly lower than regular pay. Employers lose production capacity and revenue, and they may face long-term loss of market share. Because of these costs, both actions are usually seen as measures of last resort. Resolution typically occurs through renewed negotiations, sometimes involving federal mediators, leading to a ratified contract that addresses the issues of the dispute.
