Strike pay refers to the monies paid by a union to its striking members to help compensate for the lost income as a result of the strike. This payment is intended to alleviate financial hardship for workers who are not receiving their regular wages during the strike period.
Origin of Strike Pay Funds
Strike pay is derived from a strike fund, which is accumulated during periods when the union members are working under a contract. Members typically contribute to this fund through regular dues or special assessments earmarked for this purpose.
Importance of Strike Pay
Financial Support During Strikes
Strike pay provides critical financial support to workers who are participating in a strike. Since striking workers do not receive their usual wages, the strike pay helps cover essential living expenses such as food, housing, and healthcare.
Strengthening Collective Bargaining
By offering financial support, strike pay ensures that union members can maintain their participation in a strike for a more extended period if necessary. This can strengthen the union’s position in negotiations with employers, potentially leading to better contract terms.
How is Strike Pay Calculated?
Determinants of Strike Pay Amount
The amount of strike pay a worker receives varies depending on the union’s policies, the available funds, and possibly the worker’s previous earnings. Some unions may provide a flat amount, while others may calculate it as a percentage of lost wages.
Example Calculation
If a union gives a flat rate of $200 per week as strike pay and a member’s regular income was $800 per week, the strike pay would provide some financial relief but would not fully replace the lost wages.
Historical Context
Development Over Time
The concept of strike pay has evolved alongside labor movements and unionization. Historically, labor unions developed strike funds to ensure that members could collectively sustain strikes without facing immediate economic hardship.
Notable Strikes
Many significant labor strikes in history, such as the Pullman Strike of 1894 and the General Motors Strike of 1936-1937, utilized strike funds to support workers, demonstrating the critical role of strike pay in union strategies.
Comparisons and Related Terms
Strike Benefits
While strike pay specifically refers to monetary compensation, “strike benefits” can include a broader array of support services provided by the union, such as food assistance, legal aid, and temporary housing.
Unemployment Benefits
Unemployment benefits are state-provided financial assistance for people who are unemployed through no fault of their own. Unlike strike pay, these benefits are not typically available to striking workers.
FAQs
Q: What happens if the strike fund is depleted?
Q: Are all union members eligible for strike pay?
Q: Is strike pay taxable?
Summary
Strike pay is a crucial component of union support during labor strikes, providing necessary financial assistance to workers who forgo their regular wages while participating in collective action. The funds for strike pay come from union dues and contributions made while a contract is in force, and the ability to offer strike pay can significantly impact the effectiveness and duration of a strike.
By understanding strike pay, its origins, and its implications, union members and leaders can better prepare for and sustain labor actions that aim to improve working conditions and negotiate fair contracts.
