Lockout (industry)

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A lockout is a work stoppage in which an employer prevents employees from working. This is differentiated from a strike, in which employees refuse to work. Sometimes, a lockout happens when only part of a trade union votes to strike. In such a scenario, the purpose of a lockout is to put pressure on a union by reducing the number of members who are able to work. For example, if part of the workers strike so that the work of the rest becomes impossible or less productive, the employer may declare a lockout until the workers end the strike.

Other times, particularly in the United States, a lockout occurs when union membership rejects the company's last and final offer at negotiations and offers to return to work under the same conditions of employment as existed under the now expired contract. In such a case, the lockout is designed to pressure the workers into accepting the terms of the company's last offer.

Another case in which an employer may impose a lockout is to avoid slowdowns or intermittent work-stoppages.

In the United States, under Federal labor law, an employer may only hire temporary replacements. In a strike, unless it is an Unfair labor practice (ULP) strike, an employer may legally hire permanent replacements. Also, in many U.S. states, employees who are locked-out are eligible to receive unemployment benefits, but are not eligible for such benefits during a strike.

For the above reasons, many American employers have historically been reluctant to impose lockouts, instead attempting to provoke a strike. However, as American unions have increasingly begun to resort to slowddowns rather than strikes, lockouts have come "back in fashion" for many employers, and even as incident of strikes are on the decline, incidents of lockouts are on the rise in the U.S.

The opposite is a Lockin where an employer prevents employees from leaving the worksite. This tactic is usually used to prevent a strike.

Recent notable lockout incidents have been reported in professional sports, notably involving NBA and NHL.