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21 May, 10:53

I. Discuss the rationale of organizing an industrial strike in resolving employee dispute with the

state, focusing on the detrimental effects strikes has on various stakeholders in an economy.

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Answers (1)
  1. 21 May, 12:41
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    Answer: The answer is provided below

    Explanation:

    Strike action, is a work stoppage, that is caused by mass refusal of employees to work and it usually takes place in response to the employee grievances.

    Some of the reasons for strike include:

    • Low wages: Employees engage in strik as a way to show their grievances to their employers that they're not well paid and want a pay rise.

    • Poor communication with the organisation: Another reason for strikes is the lack of trust between employers and the trade unions. In cases whereby workers believe their employers aren't transparent with them, strike can take place.

    • Employee debt: When employees are owed certain amount of money and the employer is not doing anything reasonable about paying, the workers may strike.

    • Working conditions: Workers can engage in strike in order to seek for improvement in their working conditions. This may be probably because they need better equipments, medical facilities etc.

    The detrimental effects that strikes has on various stakeholders in an economy are:

    Effects on employers: Strike affects business and it is vital for employers to know their rights and keep up to date with the current labour laws and legislation. Strike leads to loss of revenue for the owner and if the strike continues. for a long time, it can badly affect the business.

    Effects on employees: Striking employees who belong to a union are under the obligation to strike when the union wants. They can be at risk of losing their wages and benefits such as sick and holiday pay, medical aid insurance if the strike drags continues for an extended period of time.

    Effect on the economy: The impact of strike will be felt by the economy in the immediate and long term future. Strike can harm a country's investment and reputation internationally. The GDP growth will also be affected and consequences of higher wages in some sectors would lead to higher inflation.
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