Construction Labor Strikes: History and Types

In the United States, some of the strongest national trade unions have organized in the building and construction industry. A labor strike can cause delays and increase project costs for both contractors and owners. It is best for all participants to avoid labor strikes cooperatively.

This is the first blog post in a five-part series about construction labor strikes and contractors’ potential recovery of delay and damages, along with case examples on the subject. This post provides a brief history of the formation of labor unions and types of labor strikes, and the second post will discuss entitlement and excusable delay. The third post will focus on compensable delay, and the fourth post will address inexcusable or non-compensable delay. The final post will offer recommendations for contractors facing labor strikes.

Strikes trace back to the formation of labor unions in the late 1800s and early 1900s. Labor unions originated in response to inhumane working conditions that management in the textile and manufacturing industries imposed. A striking labor force refused to work to pressure management for better working conditions.

During those early years, management could disband striking employees using federally supported injunctions under the Sherman Act. In many cases, strikes led to bloody battles among labor, management, and police. During the next 50 years, the labor force obtained federal protection for the right to strike.

The Clayton Act and the Norris-La Guardia Act provide the earliest statutory protections for striking labor forces. The National Labor Relations Act (NLRA), however, includes the most significant authorization of the right to strike. According to the NLRA, two categories of strikes are protected: unfair labor practice strikes and economic strikes. The NLRA does not protect illegal strikes, such as wildcat strikes, sit-down strikes, partial/slowdown strikes, picket line violence, and secondary boycotts.

An unfair labor practice strike is a lawful protest against alleged unlawful acts of the employer. Examples of unfair labor practices are refusing to bargain with a union, discharging employees if they decide to strike, not reinstating union employees after a strike, or discharging employees for union activities. Both unions and employers can commit unfair labor practices.

An economic strike is a lawful protest for financial reasons. Examples of economic strikes include protests for wage increases, diverse benefit programs, or bonus increases.

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