# Strike pay

Strike pay is a payment made by a trade union to workers who are on strike to help in meeting their basic needs while on strike, often out of a special reserve known as a strike fund. Union workers reason that the availability of strike pay increases their leverage at the bargaining table and actually decreases the probability of a strike, since the employers are aware that their employees have this financial resource available to them if they choose to strike. When workers strike, they can also subsist using pre-strike income and savings.
It has also been used in Australian law to mean payments by employers to compensate lost earnings by employees during industrial action. Strike pay, under the usual meaning above, "is relatively uncommon in both Australia and New Zealand" according to Velden et al.

## By countries
### Spain

The main unions providing a strike fund in Spain are Unión Sindical Obrera (USO) and the Basque Basque Workers' Solidarity (ELA-STV).
According to ELA, its fund received 13.7 million euros between 2008 and 2011, 15.1% of its expenses, and 19.1 M€ between 2012 and 2016 (16,24%). It receives amounts to 25% of the dues of its members.
ELA-STV strikers can receive between €1,000 /month (the minimum wage in Spain) and €1,243. Another Basque union LAB provides a maximum of €30 /day (€900 /month) after the second day of the strike.
Strikes funded by ELA-STV can become long: 235 days at Tubacex, 285 among the cleaners of the Guggenheim Bilbao Museum, over 1,000 days at Novaltia.

### United Kingdom

Whilst some trade unions make payments to members who are on an official strike there is no requirement to do so. The UK Government makes the presumption that workers on official strike action are being paid strike pay, and so they may not be entitled to state benefits. Strike pay is not taxable income in the United Kingdom.
Limited strike funds were a constraining factor on strike pay before the 1970s

### Canada

In Canada, strike pay is not taxable income. This was confirmed in the 1990 Supreme Court of Canada case Fries v. The Queen. According to Velden et al. "in order to qualify for [strike pay], some kind of strike work, such as picketing" is usually necessary.

### United States

In the United States, courts usually hold that strike pay is taxable income. In some cases, it has been considered a gift, and thus not taxable income.

### Denmark

In Denmark "most unions provide strike pay at the comparatively high level of up to 80% of real wages" according to Velden et al. As part of collective bargaining agreements in Denmark, unions cannot provide strike pay where industrial action relates to matters already addressed in their agreement(s).

### Germany

According to Velden et al., strike pay is "paid to members involved in official strikes or locked out by employers" in Germany. In some instances, non-union members can receive strike pay from trade union strike funds.

## Strike fund

A strike fund is a reserve set up by a union ahead of time (through special assessments or from general funds) and used to provide strike pay or for other strike-related activities.
Strike funds have also been called "fighting funds" and in Danish "strejkekasse". According to Velden et al., in Belgium "unions sometimes reach an agreement with the employer to pay the wages retrospectively so that the union strike fund remains unaffected".