Strike pay is the name of payments made by a trade union

Trade union

A trade union, trades union or labor union is an organization of workers that have banded together to achieve common goals such as better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with...

 to workers who are on strike

Strike action

Strike action, also called labour strike, on strike, greve , or simply strike, is a work stoppage caused by the mass refusal of employees to work. A strike usually takes place in response to employee grievances. Strikes became important during the industrial revolution, when mass labour became...

 as help in meeting their basic needs while on strike, often out of a special reserve

Reserve (Accounting)

In financial accounting, the term reserve is most commonly used to describe any part of shareholders' equity, except for basic share capital. Sometimes, the term is used instead of the term provision; such a use, however, is inconsistent with the terminology suggested by International Accounting...

 known as a strike fund. Union workers reason that the availability of strike pay increases their leverage at the bargaining table

Collective bargaining

Collective bargaining is a process of negotiations between employers and the representatives of a unit of employees aimed at reaching agreements that regulate working conditions...

 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.

In the 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 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.

Sources

• European Employment and Industrial Relations Glossaries Online