Refusing employment to workers who are demanding higher pay or better working conditions by physically closing the place of work or using scab labour.
Implementation:
On an occasion when a labour force of a company demands better wages and working conditions, its industrial management, if it does not want to meet such demands, may choose to close down the company and hire other labourers. Then in effect, the labour force of the company is "locked out".
Claim:
1. Lockouts provide a means to hire new workers to meet production demands for delivery to customers, and thus maintain the company's economic stability.
2. Lockouts can break strikes.
3. They minimize the chance of sabotage to working facilities.
Counter Claim:
1. Lockouts escalate labour tensions and may thereby precipitate violence. 2. Lockouts cost the company its skilled and experienced labourers.