DEFINITION of 'Official Strike'

An official strike is a work stoppage by union members that is endorsed by the union and that follows the legal requirements for striking, such as being voted on by a majority of union members. Workers engaging in official strikes have better protections against being fired. An official strike is usually undertaken by employees as a last resort in response to grievances. An official strike may also be called an official industrial action, a strike action or a strike.

BREAKING DOWN 'Official Strike'

A famous official strike in the United States was the 1994 Major League Baseball strike, which canceled the end of the regular season and the entire postseason. Some of the replacement players who played during 1995 spring training, when the strike had not yet ended, remained in the major leagues, but are not allowed union membership to this day. One reason this is important is union players receive a certain percentage of Major League Baseball revenues, because MLB licenses players' names and images for items like jerseys and baseball cards. Non-union members do not receive this benefit.

How Strikes Are Undertaken

Strikes are undertaken as part of the collective bargaining process that goes on between labor unions and employers in order to determine wages, benefits, working conditions, and in the case of public servants, legislation governing said services. Generally, union members will vote to go on strike when other bargaining tactics have failed. When workers decide to strike without the approval of a union, it is called a wildcat strike. A wildcat strike may be undertaken when a union refuses to endorse a strike action, or because the striking workers do not have a union; such a strike may not offer workers the same protections as an official strike undertaken with formal union authorization.

Typically, striking workers refuse to go to work and may instead form a picket line outside the place of work in order to hinder the employer’s normal business or stop strikebreakers from crossing the picket line to go to work. Sometimes, workers conduct a strike by occupying the workplace, but refusing to complete their normal tasks and also refusing to leave the premises; such a strike is known as a sit-down strike. Where employees are public servants, picketing may take place, not at the workplace, but where lawmakers meet, such as in the West Virginia public school teachers’ strike of 2018.

RELATED TERMS
  1. Latin Baseball Futures

    A financial contract used to speculate on the potential of teenage ...
  2. Average Strike Option

    A type of Asian option in which the strike price is based on ...
  3. National Association Of Federal ...

    An industry trade group founded in 1967 that represents federal ...
  4. Federal Credit Union (FCU)

    A federal credit union is a credit union regulated and supervised ...
  5. Capital Strike

    A refusal of businesses to invest in a particular sector of the ...
  6. Strike Width

    The difference between the strike price of an option and the ...
Related Articles
  1. Insights

    Unions: Do They Help or Hurt Workers?

    Learn the pros and cons of these organizations and how they fit into today's economy.
  2. Investing

    What Happens to GM's Business When Union Members Strike?

    Familiarize yourself with how a union worker’s strike could affect GM’s bottom line, directly after the strike and into the future.
  3. Small Business

    Are Labor Unions Effective?

    This article examines some of the pros and cons associated with organized labor.
  4. Personal Finance

    The Top 5 Most Unionized Industries

    Unions don't have the membership numbers that they once did, but they are still a vital part of several different important industries.
  5. Personal Finance

    Most Successful Unions

    Labor unions have existed in the U.S. for quite some time, but not all have been as successful as these three.
  6. Personal Finance

    Do Unions Benefit Non-Union Workers?

    Union membership is shrinking, but unions still affect non-union workers today.
  7. Insights

    A History Of Baseball Economics

    A look at baseball from semi professional to its rise as a moneymaking business.
  8. Insights

    The Economics Of Postseason Baseball

    Find out how big league baseball divvies up the extra revenue that comes from postseason games.
  9. Small Business

    How Major League Baseball Makes Money

    Major League Baseball is big business. Let's take a look at where the money comes from.
  10. Insights

    Are You the Victim of Unfair Labor Practices?

    If you are a union member, a union leader, or a manager at a company with an established union, you should understand unfair labor practices.
RELATED FAQS
  1. Can an Option Have a Negative Strike Price?

    When it comes to exchange traded options, an option can't have a negative strike price. Read Answer >>
  2. What happens when a security reaches its strike price?

    Learn more about the moneyness of stock options and what happens when the underlying security's price reaches the option ... Read Answer >>
  3. What options strategies are best suited for investing in the financial services sector?

    Learn the options strategies top traders use to take advantage of the volatility in the financial services sector and the ... Read Answer >>
  4. When is a call option considered to be "in the money"?

    Learn about call options, their intrinsic values and why a call option is in the money when the underlying stock price is ... Read Answer >>
  5. Why do options with the same underlying stock and strike prices trade for different ...

    You would think that two options with the same underlying stock and strike prices would trade at the same price, but interestingly ... Read Answer >>
  6. How Do Speculators Profit From Options?

    Options are a risky game, but you can learn speculators' tricks to use them to your advantage. Read Answer >>
Hot Definitions
  1. Enterprise Value (EV)

    Enterprise Value (EV) is a measure of a company's total value, often used as a more comprehensive alternative to equity market ...
  2. Relative Strength Index - RSI

    Relative Strength Indicator (RSI) is a technical momentum indicator that compares the magnitude of recent gains to recent ...
  3. Dividend

    A dividend is a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.
  4. Inventory Turnover

    Inventory turnover is a ratio showing how many times a company has sold and replaces inventory over a period.
  5. Watchlist

    A watchlist is list of securities being monitored for potential trading or investing opportunities.
  6. Hedge Fund

    A hedge fund is an aggressively managed portfolio of investments that uses leveraged, long, short and derivative positions.
Trading Center