Term
Strike
A collective stoppage of work by employees as a last resort in a dispute over a collective agreement or for other reasons the law allows. It must be called lawfully; strikers are not paid during the strike but may not be penalised for taking part.
Updated
What it means
A strike is a collective stoppage of work by employees as a last resort in a dispute over concluding a collective agreement or for other reasons the law allows, such as a sympathy strike supporting other workers' demands. The right to strike is guaranteed by the constitution.
A strike in a dispute over a collective agreement is the final step of collective bargaining. It is preceded by negotiations between the parties and usually by proceedings before a mediator. Only when these steps fail may the trade union call a strike.
The Collective Bargaining Act sets out when a strike is lawful. It requires employee approval in a ballot, timely notice to the employer and compliance with the procedure. Some groups, such as employees in essential services, have a limited right to strike or none at all.
How it works in practice
During a strike employees are not paid for the time they do not work, but the employer may not penalise them for taking part in a lawful strike, for example by dismissal or by cutting personal performance pay. Nor may the employer replace strikers with new employees.
For payroll, a strike is a special type of absence that affects the working time fund, the calculation of average earnings and some contributions. The accounting firm should receive exact data on the days and hours of the strike so that pay and reports are correct.
The employer should prepare for a possible strike during the bargaining itself: map critical operations, secure property and safety and communicate with staff. Constructive dialogue with the works council and the union often prevents a strike altogether.
What to watch out for
If a court declares a strike unlawful, taking part may be treated as unexcused absence and the organiser may be liable for damage. Disputes over the lawfulness of a strike are employment disputes decided by a court.
Employees who do not join the strike but cannot work, for example because production has stopped, are in a different position from strikers. Their absence is assessed under the rules on obstacles at work, which may give them a right to wage compensation.
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