Whipsaw strike
Encyclopedia
A whipsaw strike is a strike
by a trade union
against only one or a few employers in an industry or a multi-employer association at a time. The strike is often of a short duration, and usually recurs during the labor dispute or contract negotiations—hence the name "whipsaw."
as a group. The goal is to negotiate an industry-wide contract which equalizes pay across employers, forcing businesses to compete on the basis of quality, innovation, and workplace safety
. This activity is known as multi-employer bargaining. Multi-employer bargaining has been common in the United States
and other countries since the 1880s. It is more common in heavily unionized industries such as construction
, steelmaking
and transportation
; where there is high turnover due to the nature of the job (such as construction and longshore operations
); and where numerous small employers face a powerful labor union. Although increasingly rare in the private sector in the United Kingdom
, multi-employer bargaining remains common in Western Europe (especially in Germany
), Scandinavia
, Japan
, and some South America
n countries (such as Brazil
, Chile
, Mexico
, Peru
and Uruguay
). A few countries, such as Australia
and Canada
, encourage multi-employer bargaining by law.
Employers face an economic incentive to break away from the employer bargaining group. If the employer does so and is able to negotiate a contract with lower labor costs, that employer will achieve a significant competitive advantage in the marketplace.
The goal of a whipsaw strike may vary. In some cases, the strike is conducted only against an employer the union believes is considering quitting the employer association. In other cases, the job action is conducted against a strong employer who is committed to staying in the employer group. The strike serves as an example to keep other, weaker businesses (which have a greater incentive to leave the employer group) in line. Sometimes, a whipsaw strike is used as a bargaining tool. For example, the strike may be directed at an employer or employers in the group which the union believes are holding up an agreement, or to keep employers off-balance in negotiations, weaken the employer group's economic strength, and exercise the union's economic power.
all employees who work for the employer association and using strikebreakers to provide temporary or permanent replacements.
Few nations have addressed the use of lockouts during whipsaw strikes, however. In the United States, the Supreme Court
has ruled on the legality of the practice. The question before the Court was whether a lockout during a whipsaw strike was an unfair labor practice
(ULP) under the National Labor Relations Act
and its various amendments. In NLRB v. Truck Drivers Local 449
("Buffalo Linen Supply Co."), 353 U.S. 87
(1957), the Court held that such a lockout was not a ULP. The high court further extended this ruling in NLRB v. Brown Food Stores, 380 U.S. 278
(1965), holding that an employer could engage in a partial lockout of its employees in advance of a whipsaw strike so long as the employer only utilized temporary replacements and locked out all workers (not just those who supported the union).
Strike action
Strike action, also called labour strike, on strike, greve , or simply strike, is a work stoppage caused by the mass refusal of employees to work. A strike usually takes place in response to employee grievances. Strikes became important during the industrial revolution, when mass labour became...
by a trade union
Trade union
A trade union, trades union or labor union is an organization of workers that have banded together to achieve common goals such as better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with...
against only one or a few employers in an industry or a multi-employer association at a time. The strike is often of a short duration, and usually recurs during the labor dispute or contract negotiations—hence the name "whipsaw."
Multi-employer bargaining
As unionization spreads in an industry, unions often attempt to encourage employers in that industry to bargainCollective bargaining
Collective bargaining is a process of negotiations between employers and the representatives of a unit of employees aimed at reaching agreements that regulate working conditions...
as a group. The goal is to negotiate an industry-wide contract which equalizes pay across employers, forcing businesses to compete on the basis of quality, innovation, and workplace safety
Workplace safety
Workplace safety & health is a category of management responsibility in places of employment.To ensure the safety and health of workers, managers establish a focus on safety that can include elements such as:* management leadership and commitment...
. This activity is known as multi-employer bargaining. Multi-employer bargaining has been common in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
and other countries since the 1880s. It is more common in heavily unionized industries such as construction
Construction
In the fields of architecture and civil engineering, construction is a process that consists of the building or assembling of infrastructure. Far from being a single activity, large scale construction is a feat of human multitasking...
, steelmaking
Steelmaking
Steelmaking is the second step in producing steel from iron ore. In this stage, impurities such as sulfur, phosphorus, and excess carbon are removed from the raw iron, and alloying elements such as manganese, nickel, chromium and vanadium are added to produce the exact steel required.-Older...
and transportation
Shipping
Shipping has multiple meanings. It can be a physical process of transporting commodities and merchandise goods and cargo, by land, air, and sea. It also can describe the movement of objects by ship.Land or "ground" shipping can be by train or by truck...
; where there is high turnover due to the nature of the job (such as construction and longshore operations
Stevedore
Stevedore, dockworker, docker, dock labourer, wharfie and longshoreman can have various waterfront-related meanings concerning loading and unloading ships, according to place and country....
); and where numerous small employers face a powerful labor union. Although increasingly rare in the private sector in the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, multi-employer bargaining remains common in Western Europe (especially in Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
), Scandinavia
Scandinavia
Scandinavia is a cultural, historical and ethno-linguistic region in northern Europe that includes the three kingdoms of Denmark, Norway and Sweden, characterized by their common ethno-cultural heritage and language. Modern Norway and Sweden proper are situated on the Scandinavian Peninsula,...
, Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
, and some South America
South America
South America is a continent situated in the Western Hemisphere, mostly in the Southern Hemisphere, with a relatively small portion in the Northern Hemisphere. The continent is also considered a subcontinent of the Americas. It is bordered on the west by the Pacific Ocean and on the north and east...
n countries (such as Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
, Chile
Chile
Chile ,officially the Republic of Chile , is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far...
, Mexico
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
, Peru
Peru
Peru , officially the Republic of Peru , is a country in western South America. It is bordered on the north by Ecuador and Colombia, on the east by Brazil, on the southeast by Bolivia, on the south by Chile, and on the west by the Pacific Ocean....
and Uruguay
Uruguay
Uruguay ,officially the Oriental Republic of Uruguay,sometimes the Eastern Republic of Uruguay; ) is a country in the southeastern part of South America. It is home to some 3.5 million people, of whom 1.8 million live in the capital Montevideo and its metropolitan area...
). A few countries, such as Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
and Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
, encourage multi-employer bargaining by law.
Employers face an economic incentive to break away from the employer bargaining group. If the employer does so and is able to negotiate a contract with lower labor costs, that employer will achieve a significant competitive advantage in the marketplace.
Whipsaw strike in multi-employer bargaining
To discourage employers from breaking away from the bargaining group, unions developed the whipsaw strike. In a whipsaw strike, the union strikes one employer (or just a few employers) in the multi-employer bargaining group. The strike is usually of a short duration (a few days or a week at most). The union strikes employer after employer. Strikes may occur one after another and may overlap, or there may be long lulls between strikes. The same employer may be struck repeatedly, with sometimes as little as 24 hours between strikes.The goal of a whipsaw strike may vary. In some cases, the strike is conducted only against an employer the union believes is considering quitting the employer association. In other cases, the job action is conducted against a strong employer who is committed to staying in the employer group. The strike serves as an example to keep other, weaker businesses (which have a greater incentive to leave the employer group) in line. Sometimes, a whipsaw strike is used as a bargaining tool. For example, the strike may be directed at an employer or employers in the group which the union believes are holding up an agreement, or to keep employers off-balance in negotiations, weaken the employer group's economic strength, and exercise the union's economic power.
Employer responses and legality
Employer reactions to whipsaw strikes vary widely. In some countries which ban worker strikes, the whipsaw strike is illegal and employers are able to work with government law enforcement officials to end its use. In countries where the whipsaw strike is permitted, employers often counter this form of strike by locking outLockout (industry)
A lockout is a work stoppage in which an employer prevents employees from working. This is different from a strike, in which employees refuse to work.- Causes :...
all employees who work for the employer association and using strikebreakers to provide temporary or permanent replacements.
Few nations have addressed the use of lockouts during whipsaw strikes, however. In the United States, the Supreme Court
Supreme Court of the United States
The Supreme Court of the United States is the highest court in the United States. It has ultimate appellate jurisdiction over all state and federal courts, and original jurisdiction over a small range of cases...
has ruled on the legality of the practice. The question before the Court was whether a lockout during a whipsaw strike was an unfair labor practice
Unfair labor practice
In United States labor law, the term unfair labor practice refers to certain actions taken by employers or unions that violate the National Labor Relations Act and other legislation...
(ULP) under the National Labor Relations Act
National Labor Relations Act
The National Labor Relations Act or Wagner Act , is a 1935 United States federal law that limits the means with which employers may react to workers in the private sector who create labor unions , engage in collective bargaining, and take part in strikes and other forms of concerted activity in...
and its various amendments. In NLRB v. Truck Drivers Local 449
NLRB v. Truck Drivers Local 449
NLRB v. Truck Drivers Local 449 , 353 U.S. 87 , is an 8-0 decision by the Supreme Court of the United States in which the Court held that a temporary lockout by a multi-employer bargaining group threatened by a whipsaw strike was lawful under the National Labor Relations Act and the Taft-Hartley...
("Buffalo Linen Supply Co."), 353 U.S. 87
Case citation
Case citation is the system used in many countries to identify the decisions in past court cases, either in special series of books called reporters or law reports, or in a 'neutral' form which will identify a decision wherever it was reported...
(1957), the Court held that such a lockout was not a ULP. The high court further extended this ruling in NLRB v. Brown Food Stores, 380 U.S. 278
Case citation
Case citation is the system used in many countries to identify the decisions in past court cases, either in special series of books called reporters or law reports, or in a 'neutral' form which will identify a decision wherever it was reported...
(1965), holding that an employer could engage in a partial lockout of its employees in advance of a whipsaw strike so long as the employer only utilized temporary replacements and locked out all workers (not just those who supported the union).