Question

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.

Answer 1

An industrial strike is a situation where workers in a given industrial sector, when they feel injured by the company and recognize that the State does not provide labor rights and guarantees, decide to stop their activities and not work in their sector.

As a result, the state experiences a lack of services and products that were carried out and manufactured by these workers. The population no longer has these services and products to buy, which reduces the amount of money in circulation in the State, affecting the economy in a huge way and may even prevent activities from other economic sectors from being carried out, which reduces circulation of money and the industrial and economic production of the State even more intensely, which can cause unemployment, shortages and economic crisis.