When would a company utilize a lockout? Explain whether a lockout is legal.

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Expert Solution

If there is labor dispute within a company, which is not resolved, the management goes for temporary work stoppage is known as lockout. Therefore, this is utilized if the management fails to resolve labor disputes. Actually it is utilized as a weapon scaring employees that they are jobless because they don’t come in the agreement.

A lockout is legal if the following steps are accomplished:

Step 1) Management and workers must sit together regarding the issue (like wage rate, working environment, etc.) and should try to resolve it through understanding, negotiation, or bargaining.

Step 2) If the above step doesn’t work, Ministry of Labor should intervene and try to narrow the issue so that the parties come into the full agreement.

Step 3) If the above step doesn’t work, there will be voting in favor of lockout. Majority of voting is more than 50% in favor of lockout; if such thing happens, the management can go for lockout.

Rahul Sunny answered 1 year ago

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