MegaChemicals, Inc., has reached a bargaining impasse with its chemical workers union. Because of a serious fear of sabotage, the management of MegaChemicals has decided to close down operations until the bargaining impasse is settled. This action is called a(n) _____.
A) unfair labor practice
B) work slowdown
C) management boycott
D) lockout
E) reverse strike

Question

Quizplus · Accepted Answer

The management's action of closing down operations until the bargaining impasse is settled is called a lockout. A lockout is a management-initiated work stoppage, often used as a bargaining tactic during labor disputes. The aim is to put pressure on the workers' union to accept management's proposals. In this case, MegaChemicals has decided to use a lockout due to their fear of sabotage.