No strike/no lockout: Overview, definition, and example
What is no strike/no lockout?
No strike/no lockout is a clause commonly included in labor agreements or collective bargaining contracts that prohibits both parties—the employer and the employees (or union)—from engaging in disruptive actions, such as strikes or lockouts, during the term of the contract. A strike refers to a work stoppage initiated by employees as a form of protest or to demand better working conditions or terms, while a lockout is a work stoppage initiated by the employer, usually to prevent employees from working or to force compliance with certain demands. The no strike/no lockout clause ensures that both parties agree to resolve disputes through negotiation or alternative methods, avoiding work stoppages that could disrupt operations.
Why is no strike/no lockout important?
The no strike/no lockout clause is important because it promotes stability, reduces the risk of labor disputes, and ensures that business operations continue without interruption. For employers, this clause helps avoid the financial and operational disruption that can result from strikes or lockouts. For employees or unions, it provides the assurance that they can continue to work without the threat of being locked out. The clause encourages both parties to engage in peaceful negotiations or alternative dispute resolution methods rather than resorting to extreme measures like strikes or lockouts.
Understanding no strike/no lockout through an example
Imagine a manufacturing company enters into a collective bargaining agreement with its workers. The agreement includes a no strike/no lockout clause, meaning that during the contract period, workers cannot go on strike to demand higher wages or better working conditions, and the company cannot lock out the workers to force compliance with its terms. Instead of resorting to these actions, both the company and the workers agree to resolve any disagreements through formal negotiation or mediation.
In another example, a public sector union might agree to a no strike/no lockout clause in a contract with a city government. This ensures that during the term of the agreement, municipal services such as public transportation or emergency services will not be interrupted by labor unrest. The clause promotes the use of dispute resolution methods, such as arbitration, to address conflicts.
An example of no strike/no lockout clause
Here’s how a no strike/no lockout clause might appear in a labor contract:
“During the term of this Agreement, neither the Union nor the Employer shall engage in a strike, lockout, or other work stoppage. Any disputes arising between the Parties shall be resolved through arbitration or other mutually agreed-upon dispute resolution methods.”
Conclusion
The no strike/no lockout clause plays a crucial role in maintaining labor peace and ensuring the continuous operation of a business or public service. By preventing strikes or lockouts, the clause encourages both the employer and employees to seek peaceful and constructive solutions to disputes, ensuring that operations are not disrupted. This clause is a fundamental element in labor agreements that helps foster cooperation, stability, and a focus on negotiation rather than confrontation.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.