Benefits and Drawbacks of a Strike Management Essay (Essay Sample)

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Benefits and Drawbacks of a Strike
From the Perspective of the Management
Benefits
Employing Lasting Replacements. Businesses fire employees who are not productive and substitute them with the ones whom they think might bring more revenues to the organization. According to Gomez-Mejia, et al., labor laws all over the world allow companies to hire workers who would permanently replace the striking ones. This option helps firms to comply with unions’ collective bargaining agreements.
Exhaust the Resources of the Union. When employees go on strike, organizations do not pay them. This action forces the unions to pay workers using their cash. Institutions use this tactic to ensure that unions become weak and make them unable to encourage future strikes.
Drawbacks
Organizations Lose Business and Revenue. When employees participate in strikes, they tarnish the name of the firm. This action makes the institution to start dealing with customers' negative feedback. Investors might move to the company’s rivals when workers complain a lot. When employees are still on strike, firms do not produce enough, hence, a deficiency in the market occurs, which reduces buying of the firms’ products.