Question

Explain the costs and benefits to union members of a strike. Does it explain why most union negotiations end without a strike?

Answer 1

Costs of a union strike: Halting of production and subsequently lower output production due to inefficiency during the days of the strike. Damage to the brand name. Lower efficiency and motivation of workers in a few cases even after the strike is resolved.

Benefits of a union strike: Higher welfare of workers in terms of higher income, insurance and other benefits. The management comes to know the wants of the workers.

Most negotiations end without a strike because:

a) Union workers don't have a high enough income to be involved in legal disputes. They cannot forego the income of the days they don't work neither the employment opportunity in most cases.

b) The management does not want the brand name and reputation of the company to get affected and the production/output to get hampered.