Question

How do union strikes affect the overall impact on a business or corporation (i.e. employees, profit, etc.). Is this beneficial to the overall success of the economy?

Answer 1

Strikes are increasingly common and this not only impacts the local economy, but also companies and workers alike. Employment partnerships could become strained between both sides, which could impact communication and productivity. Businesses are suffering from production and financial losses, and customer trust is adversely affected.

Whether a strike is legal or illegal, the company is affected, and workers need to know their rights and be up-to-date with current labor legislation and regulations. Many employers may choose to hire workers to replace striking workers and may raise shifts if the strike lasts for a long time. It is very important to have a contract by law for part-time / temporary workers. For days that have not been worked, the employer does not have to pay striking workers. If the strike was unlawful, it could be a legitimate dismissal.

Striking Workers belonging to a union must strike as decided by the employer. If the strike drags on for an extended period of time, workers could be at risk of losing not only salaries but benefits such as medical aid coverage, sick and holiday pay. If an employer is a member of the union and does not want to engage in the strike, members of the union may be at risk of being intimidated. Members of a union are generally protected from dismissal in a legal strike.

In the immediate and long term, the effects of striking will be felt as strikes appear to reoccur in some sectors and have become violent in some cases. Economists agree that it is difficult to calculate the impact of strikes on the economy, but it is detrimental to the country and its workers. GDP growth will be affected and the effects of higher wages would inevitably lead to higher inflation in certain sectors.