key term - Strikes

Definition

A strike is a work stoppage carried out by employees as a form of protest or to demand changes in their working conditions, wages, or other employment-related issues. Strikes are a key tool used by labor unions and workers to exert pressure on employers and negotiate better terms of employment.

5 Must Know Facts For Your Next Test

1. Strikes can be used to protest unfair labor practices, demand higher wages, improve working conditions, or resist employer attempts to reduce benefits or change employment terms.
2. The threat of a strike can be a powerful bargaining tool for workers, as it disrupts the employer's operations and creates financial pressure to reach a favorable agreement.
3. Strikes can be classified as wildcat strikes (unauthorized by a union), sympathy strikes (in support of another group of workers), or general strikes (involving a large number of workers across multiple industries).
4. Employers may respond to strikes by hiring temporary or replacement workers, known as strikebreakers, in an effort to maintain operations and undermine the strike's effectiveness.
5. The legality and protections for strikes vary by jurisdiction, with some countries and states placing restrictions on the right to strike, particularly for public sector workers or in essential services.

Review Questions

• Explain how strikes are used as a bargaining tool in the context of bilateral monopoly.
  • In a bilateral monopoly, where there is a single buyer (the employer) and a single seller (the labor union), strikes can be a powerful bargaining tool for workers. The threat of a strike disrupts the employer's operations and creates financial pressure, compelling the employer to negotiate more favorable terms with the union. Strikes allow the labor union to exert its collective bargaining power and leverage the employer's dependence on the workers to secure better wages, benefits, and working conditions.
• Analyze the potential consequences of a strike on the bilateral monopoly market.
  • A strike in a bilateral monopoly market can have significant consequences for both the employer and the workers. If the strike is successful in disrupting the employer's operations, it can lead to lost revenue and production, potentially forcing the employer to make concessions to end the strike. However, the employer may also attempt to counter the strike by hiring replacement workers or seeking legal action, which could escalate the conflict. The duration and impact of the strike can ultimately determine the balance of power between the employer and the labor union, and the final outcome of the bilateral negotiations.
• Evaluate the role of government intervention in resolving strikes within a bilateral monopoly framework.
  • Governments may intervene in strikes within a bilateral monopoly context to protect the public interest, maintain essential services, or facilitate a resolution between the employer and the labor union. This intervention can take the form of mediation, arbitration, or even the imposition of restrictions on the right to strike. The government's role in these situations is to balance the interests of the employer, the workers, and the broader public, while ensuring that the bilateral monopoly negotiations are conducted in a fair and transparent manner. The effectiveness of government intervention can have significant implications for the power dynamics and the ultimate outcome of the bilateral monopoly relationship.

Related terms

Collective Bargaining:

The process of negotiation between employers and a group of employees to determine the conditions of employment, such as wages, hours, benefits, and other working conditions.

Labor Union: An organized association of workers formed to protect and further their rights and interests, often through collective bargaining and strikes.

Lockout: An action in which an employer prevents employees from accessing the workplace, typically in response to a strike or other labor dispute, as a means of exerting pressure on workers.