The goal is to negotiate an industry-wide[2] contract which equalizes pay across employers, forcing businesses to compete on the basis of quality, innovation, and occupational safety and health.
It is more common in heavily unionized industries such as construction, steelmaking and transportation; where there is high turnover due to the nature of the job (such as construction and longshore operations); and where numerous small employers face a powerful labor union.
[4] Although increasingly rare in the private sector in the United Kingdom, multi-employer bargaining remains common in Western Europe (especially in Germany), Scandinavia, Japan, and some South American countries (such as Brazil, Chile, Mexico, Peru and Uruguay).
The strike serves as an example to keep other, weaker businesses (which have a greater incentive to leave the employer group) in line.
In NLRB v. Truck Drivers Local 449 ("Buffalo Linen Supply Co."), 353 U.S. 87 (1957), the Court held that such a lockout was not a ULP.
[3][7][8][9][10] The high court further extended this ruling in NLRB v. Brown Food Stores, 380 U.S. 278 (1965), holding that an employer could engage in a partial lockout of its employees in advance of a whipsaw strike so long as the employer only utilized temporary replacements and locked out all workers (not just those who supported the union).