Lockout (industry)

A lockout is a specific type of work stoppage used during a labor dispute. It occurs when the management of a company denies employment to its workers. This action is the direct opposite of a strike. In a strike, the employees choose to refuse work. In a lockout, the employers or industry owners initiate the stoppage. This is often described as the antithesis of a strike because the power to stop work comes from the top down.

Management uses several methods to implement a lockout. The most common way is to refuse to admit employees onto company premises. Employers might physically change the locks on building doors. They may also hire security guards to protect the property and keep workers out. Other methods include refusing to let employees clock in on time clocks. Some companies may even impose a fine for employees who show up to work during the dispute.

The primary goal of a lockout is to enforce specific terms of employment. It serves as a tool to pressure unionized workers into accepting new conditions. For example, a manager might use a lockout to convince a union to accept lower wages. If a union demands higher pay or better benefits, a manager might use the threat of a lockout to make them relent. It is a way to gain leverage during negotiations over the collective bargaining agreement, which is the contract between owners and workers.

Lockouts have a long and significant history in industrial nations. In 1892, a major event occurred at the Homestead Steel Mill in Pennsylvania. After several wage cuts, the union called for a strike. In response, Henry Clay Frick shut down the plant and locked out all workers. Another massive event was the Dublin Lockout in Ireland. This dispute lasted from August 26, 1913, to January 18, 1914. It involved 20,000 workers and 300 employers. It remains one of the most significant industrial disputes in Irish history, centering on the right to unionize.

In the United States, the legal rules for lockouts differ from those of strikes. Under federal labor law, an employer can only hire temporary replacements during a lockout. However, during a strike, an employer may legally hire permanent replacements. Additionally, many U.S. states allow locked-out employees to receive unemployment benefits. Workers on strike are generally not eligible for these benefits. Because of these factors, many American employers prefer to provoke a strike rather than initiate a lockout. However, lockouts are becoming more common as unions use slowdowns more often.

Lockouts also frequently impact the world of professional sports. Disputes between team owners and players often lead to work stoppages. Major League Baseball has experienced four lockouts, including the 1990 and 2021–22 offseasons. The National Basketball Association has seen four lockouts as well. The National Hockey League has endured several, including a lockout in 2004–05 that resulted in the entire season being canceled. Even the National Football League has had lockouts involving referees in 2001 and 2012.

These disputes can have massive effects on society and public services. In 2013, a lockout in Denmark involved more than 60,000 primary school teachers. This meant that 600,000 students could not attend school. In 2011, a lockout at Qantas in Australia grounded the company's entire fleet of domestic flights for several days. In 2005, the Canadian Broadcasting Corporation locked out 5,500 employees. This caused programming to consist mainly of repeats, with news being provided by the BBC.

Sometimes, the roles in these disputes are reversed through a practice called a lock-in. A lock-in occurs when workers physically prevent management from leaving a workplace. This is sometimes called "bossnapping" by the media. For instance, in March 2009 in France, employees locked a manager in his office for 24 hours. In Auckland, New Zealand, call center employees locked the front doors of their office. They did this in response to management locking them out. These events show how intense labor disputes can become for both sides.