STRIKES CAUSES ECONOMIC DIS-BALANCE
Strike in a country causes massive shutdown in resources and hence resulting in failure of providing support to differential economic scenarios, and in a country like India it affects on a large scale.
A refusal to work organized by a body of employees as a form of protest, typically in an attempt to gain a concession or concessions from their employer, is the dictionary definition of a strike, but it’s not just that, According to a study a loss of about 25000 crores is suffered by India on any major “strike-day”. A strike is the act of not following a normal course of day, which an individual is supposed to do, act of strike is seen as a response of likeminded people to not obeying a certain policy, rule, norm, monetary issue or non-monetary problems occurred in a certain industry or a group of people which demands the same as others do.
The loss of production and of customers is usually the first consequence of a strike. However, indirect strike costs incurred later can be just as serious. In order to avoid the snowballing costs and loss of business that strikes can cause the one should understand:
- What constitutes a strike in legal terms,
- The economic effects of a strike for both parties,
- The effects of a strike on the employment relationship,
- How to resolve constructively the conflict that causes industrial action,
- How to minimize the damage caused by a strike, and
- How to bring a strike to a speedy end.
Effects of Strike-
Effects on Employers
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 labor 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. It is very important that part-time/temporary workers have a contract by law. The employer does not have to remunerate striking workers for days not worked. If the strike is illegal this could constitute a fair dismissal.
Effects on Employees
Striking Employees that belong to a union are under obligation to strike when the union determines. They could be at risk of losing not only wages but benefits such as medical aid insurance, sick and holiday pay if the strike drags on for an extended period of time. If an employee is a union member and does not want to partake in the strike, he/she could be at risk of intimidated by members of the union. Members belonging to a union in a legal strike are generally protected from dismissal.
Effects on the Economy
The effects of striking will be felt in the immediate and long term future as strikes are appearing to re-occur in some sectors and in some cases have become violent. The Indian economy is vulnerable at this point in time and striking season could harm the country’s investment reputation internationally. Economists agree that the effect of strikes on the economy is difficult to calculate but, is detrimental to the country and its workers. GDP growth will be affected and the consequences of higher wages in certain sectors would inevitably lead to higher inflation.
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