Strikes and lockouts

Introduction 

Strikes and lockouts are one means traditionally used by parties to further their bargaining goals.  However this type of action has a significant impact.

  • It may have major emotional and economic effects on the parties directly involved, their families and in some cases, society as a whole
  • The harm that is caused to the relationships of those bargaining may take a long time to heal

A strike is the act of a number of employees who wholly or partially stop work or reduce normal performance of work.

A lockout is an act of an employer who closes the business, or suspends workers, in order to compel them to accept terms of employment or to make them comply with certain demands.

What must I do?

A strike or lockout is unlawful if

  • It occurs before 40 days have passed since the bargaining was initiated
  • There is a current collective agreement
  • It relates to the inclusion of a bargaining fee clause in the collective agreement

The employer may generally not employ replacement employees to do the work of striking or locked-out workers, unless there are health and safety reasons to do so. Employers may request other employees to do the work of striking or locked out employees, but those employees must be free not to undertake the work.

If a strike or lock out occurs in an “essential service” there must be written notice to the Chief Executive of the Department of Labour and mediation services will be offered as soon as possible.

An employer may suspend an employee who is party to a strike. If this occurs the employee’s monetary entitlements are also suspended. There is no obligation to pay someone who is on a total strike, suspended or otherwise, but if a person is on a partial strike (performing only some duties) they must be paid unless suspended. Non-striking employees may be suspended where there is no work for them.

An employer suspending employees must inform them of the basis of the suspension, including informing them which section of the Employment Relations Act 2000, the employer relies upon.”

The duty of good faith continues with a strike or lock out, which means communication should be accurate and focused on achieving a stable solution in due course. Likewise the duty to deal with each other party’s representative on bargaining matters continues.

What else can I do?

Whenever there is an impasse, parties can seek support under the Employment Relations Act

  • a mediator can assist parties at short notice
  • under certain circumstances the Employment Relations Authority can facilitate the bargaining
  • if bargaining is undermined by sustained and serious breaches of good faith, the Employment Relations Authority can be asked to fix the terms of a collective agreement

On the right side the panel leads you to more information and resources on strikes and lock outs, including the assistance you can seek from the Department of Labour mediation service.