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 were not allowed union membership. 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. Nonunion 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.

  1. Strike Price

    Strike price is the price at which the underlying asset of a ...
  2. Condor Spread

    A condor spread is a non-directional options strategy that seeks ...
  3. Strike Width

    Strike width is the difference between the strike prices of the ...
  4. Synthetic Futures Contract

    A synthetic futures contract, or synthetic long future, mimics ...
  5. Iron Condor

    An iron condor is an options strategy that involves buying and ...
  6. Fence (Options)

    A fence is an options strategy using three options ranges around ...
Related Articles
  1. Personal Finance

    The History Of Unions In The United States

    Although the overall power of labor unions may not be what it once was, they still maintain a great deal of influence in the United States.
  2. Trading

    The Butterfly Spread

    A butterfly spread is a neutral options strategy with both limited risk and limited profit potential. The strategy involves four options contracts with the same expiration month but with three ...
  3. 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.
  4. Small Business

    Are Labor Unions Effective?

    This article examines some of the pros and cons associated with organized labor.
  5. Investing

    AT&T and CWA Extend Contract Talks

    AT&T and the union extended expiration of a labor contract this weekend, averting a strike for now.
  6. Personal Finance

    Do Unions Benefit Non-Union Workers?

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

    Options Strategies for Your Portfolio to Make Money Regularly

    Discover the option-writing strategies that can deliver consistent income, including the use of put options instead of limit orders, and maximizing premiums.
  8. Investing

    Writing Covered Calls On Dividend Stocks

    Writing covered calls on stocks that pay above-average dividends is a strategy that can be used to boost returns on a portfolio, but it carries some risk.
  9. Trading

    Using Options To Pay Off Debt

    We tell you about four option strategies that could provide a way to pay off your debt.
  10. Trading

    Options Basics: How to Pick the Right Strike Price

    The strike price has an enormous bearing on how your option trade will play out. Read on to learn about some basic principles to follow.
  1. How do I set a strike price for a future?

    Find out why futures contracts don't have set strike prices like options or other derivatives, even though price change limits ... Read Answer >>
  2. What occurs when a security meets 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. When is a put option considered to be 'in the money?'

    Learn about put options, how these financial derivatives work, and when put options are considered to be in the money related ... Read Answer >>
  4. I own options on a stock, and it's just announced a split. What happens to my options?

    When a stock splits, the options contract undergoes an adjustment called "being made whole, when an underlying stock splits. Read Answer >>
  5. 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 >>
Trading Center