What are the possible consequences of a strike with reference to the economy of a country?
What are the possible consequences of a strike with reference to the economy of a country?
Whilst there are potential benefits from strikes, such as better work morale, lower absenteeism, or improved labour productivity, strike action also brings about numerous direct and indirect economic costs that can be high, depending on duration, number of workers involved and divisions affected, the Initiative …
What are disadvantages of strike?
THE ECONOMIC EFFECTS OF A STRIKE FOR BOTH PARTIES. The employer is likely to lose money due to delayed service to clients or to lost production time. The employees will lose their pay due to the no work, no pay principle. If the strikers are dismissed they will lose their livelihoods altogether.
Why is strike good?
A strike reveals something that employers would prefer we not notice: they need us. Workplaces are typically run as dictatorships. In a good strike, everyone has a meaningful role. Strikers develop new skills and a deeper sense that they own and run their union.
How did the Marikana strike affect the economy of South Africa?
Amplats said on Thursday that the strike and subsequent ramp up had resulted in production losses of 532 000 ounces, worth about $675m at current prices. Impala Platinum, also hit by the strike, will give a production update next week but the combined industry losses are estimated to be at least 1.2 million ounces.
What are the advantages and disadvantages of strike?
The major advantage of union strikes is that they allow workers to protest action by an employer that they feel is unfair without the risk of firing or punishment. A disadvantage of strikes is that they can cause financial damage to the company involved since no work is being performed.
How does strike affect the community?
Better Working Conditions. As a result of a strike, employers are made more aware of their employees’ working conditions and employee rights. Issues that employees have bottled up are brought to the open. This results in better working and living conditions for the entire community.
What are the negative effects of strike on the economy?
Strike action results in less productivity, which in turn means less profits. Labour Law expert, Ivan Israelstam confirms that; “The employer is likely to lose money due to delayed service to clients or to lost production time. The employees will lose their pay due to the no work, no pay principle.
What are the pros and cons of striking?
Why is strike bad?
Labour issues Prolonged strikes hurt both the employer and employees and also have a negative impact on the country’s economy. They hurt both employers and employees the same – employers lose income while trade unions or employees lose wages, which is hard to recover after a prolonged industrial action.
Why is striking often avoided if possible?
Why is striking often avoided if possible? Strikes have their advantages when any other solution has become impossible. For example the strike that was organized by Writers Guide of America had cost the industry 5 months and $500 million. Therefore, strike is avoided and instead face to face negotiation is encouraged.
What was the impact of the strike on the mine workers in South Africa?
Local African National Congress leaders were arrested and tried for treason and sedition. Workers at 32 of the 45 mines on the Rand had participated in the strike. Hundreds of workers were arrested, tried, imprisoned, or deported. A total of 1,248 miners on strike were wounded and nine were killed.
What caused the Marikana strike?
On 16 August 2012, the South African Police Service (SAPS) opened fire on a crowd of striking mineworkers at Marikana, in the North West Province. This event culminated after an intense week-long protest in which the miners were demanding a wage increase at the Lonmin platinum mine in a wildcat strike.
What are the economic effects of a strike?
THE ECONOMIC EFFECTS OF A STRIKE FOR BOTH PARTIES. The employer is likely to lose money due to delayed service to clients or to lost production time. The employees will lose their pay due to the no work, no pay principle.
How did the Auto Strike affect the economy?
Lehohla was referring to industrial action in the automotive sector, late last year, where work stoppages cost the country’s auto makers 50 000 in loss of production, which resulted in exports declining by 75% year-on-year.
What happens if a company goes on strike?
Whether a strike is legal or Illegal, the business is affected and it is imperative for employers to know their rights and to keep up to date with current labour laws and legislation. Some businesses may opt to hire workers to replace the striking employees and perhaps increase shifts if the strike continues for a long period of time.
Why are there strikes in the free market?
The basic economics of a unionized work force would tell you that workers are not receiving adequate compensation or benefits from their employer through the free-market system. Therefore, they need to organize to threaten the employer with a strike in order to get more compensation, better working conditions and better benefits.
THE ECONOMIC EFFECTS OF A STRIKE FOR BOTH PARTIES. The employer is likely to lose money due to delayed service to clients or to lost production time. The employees will lose their pay due to the no work, no pay principle.
Whether a strike is legal or Illegal, the business is affected and it is imperative for employers to know their rights and to keep up to date with current labour laws and legislation. Some businesses may opt to hire workers to replace the striking employees and perhaps increase shifts if the strike continues for a long period of time.
Why do so many people go on strike?
While some strikes come as a protest against some deeply resented action on the part of management, the most common single strike cause is still the demand for more money. This consuming desire for more money is contagious. When workers in one industry get a pay boost, others are not satisfied until they do too.
How does a slow down strike affect work?
In a slow-down strike, employees report to work as normal but perform their work at a slow, methodical pace that slows down productivity. Sit-downs. With a sit-down strike, employees report to work but refuse to perform work-related tasks. Many worker strikes are over illegal and unethical practices in the workplace.