This tactic occurs when management attempts to put pressure on unions by closing the business.
This tactic is commonly referred to as "lockout" or "employer lockout." A lockout is a strategy employed by management to exert pressure on unions during labor disputes or contract negotiations. It involves the temporary or permanent closure of a business, preventing employees from entering the workplace and thus depriving them of their jobs and income.
Lockouts are usually initiated by employers as a response to strikes or as a preemptive measure to discourage employees from striking. The intention is to create economic hardship for workers, making them more inclined to accept management's demands, compromise on certain issues, or discourage them from continuing strike action.
By imposing a lockout, management aims to exert leverage over the union by demonstrating the potential consequences of their refusal to compromise. It puts workers in a vulnerable position, as they face job insecurity and financial hardship during the closure period.
However, lockouts are subject to labor laws and regulations in each jurisdiction, and there are legal constraints on their use. In many jurisdictions, there are specific conditions and restrictions on initiating a lockout, ensuring that it is not misused by employers and protecting workers' rights.
It is worth noting that while lockouts may be an effective pressure tactic in some cases, they can also damage the relationship between management and labor and have negative consequences for the company's reputation and customer loyalty.
The tactic you are referring to is commonly known as "union busting" or "union avoidance." Union busting is an anti-union strategy employed by management to undermine or eliminate the power of labor unions within their organization. Closing the business is one of the aggressive ways management may try to discourage unionization efforts. Here is a step-by-step breakdown of key points related to this tactic:
1. Union organizing: In an attempt to address workplace issues or improve their working conditions, employees may decide to form or join a labor union.
2. Management resistance: Upon learning about the organization's unionization efforts, management may oppose it for various reasons, such as concerns over increased labor costs, loss of control over decision-making, or potential disruption to business operations.
3. Union avoidance strategies: To prevent the formation of a union, management may resort to different tactics collectively known as union busting, such as:
a. Coercion and intimidation: Managers may use threats, coercion, or intimidation to discourage employees from joining or supporting the union.
b. Surveillance and monitoring: Management may increase surveillance or monitoring of employees' activities, like their conversations or online behavior, to identify union supporters or gather evidence against union activities.
c. Captive audience meetings: Employers may hold mandatory meetings where employees are subjected to anti-union presentations, propaganda, or misinformation.
d. Legal tactics: Management may exploit labor laws or engage in legal maneuvering to delay or challenge the unionization process, aiming to wear down union supporters or hinder their progress.
4. Threat of closure: Extreme cases of union busting involve management threatening to close the business or relocate operations to other locations or countries with lower labor costs. This strategy aims to instill fear among employees and discourage their unionization efforts by presenting the potential loss of jobs and economic instability.
5. Implications and alternatives: Closing a business or facility as a response to unionization carries significant consequences, including job losses, negative public perception, legal challenges, and potential damage to the company's reputation and worker morale. It is crucial for both management and employees to explore alternative methods of addressing workplace concerns, fostering open dialogue, and striving for fair and constructive labor-management relationships.
It's important to note that union busting and the threat of closure are controversial tactics, and labor laws may vary across different countries. Consulting with legal professionals or labor experts is advisable for a comprehensive understanding of the specific legalities surrounding unionization and employer actions in your jurisdiction.