It is imperative for business associations and employees to understand the meaning and consequences of closure, lockout, and strike on HRM as all the three actions have their own significant and very powerful effect over both the workers/labors and the establishment if not executed correctly.
Lockout in HRM is an action of briefly shutting down the work in a company without actually closing down the operation of/in the establishment. Often initiated by the administration of the organization, it involves denying employees' employment and refusal of admitting workers to work, generally by issuing a notice of lockout 6 weeks prior to the execution of the action.
During the lockout, workers are refrained from entering the premises of the factory and could face fine or prosecution if refused to abide. This action often tends to lead to a labor movement and political/ government involvement.
There are many causes as to why the management of a factory decides to initiate the lockout. Generally, the following factors prompt employers to create a lockout:
A strike is a labor movement conducted by the trade union workers or the worker associations in a company to force the management of the organization to accept and fulfill their demands or necessitates.
During a strike, mass groups of employees temporarily quit working and take to the street or stay within the factory premises to express their grievance or lay down demands, which need to be met. This ultimately affects the revenue of the company.
The aspects that prompt workers to go on a strike depends on various scenarios and situations. Typically, laborers take the street for the following reasons:
The closure is an immediate action executed by the management of a company during unexpected circumstances and emergencies. It involves temporarily closing a part of division/ sector or the entire factory/ plant to contain the situation. During this action, the company suspends all the work, without any formal notice, temporarily or permanently depending upon the situation.