The financial impact of strikes : a worker's perspective

Abstract

The consequences of labour strikes are many and varied and the aim of this manuscript is to focus solely on the financial ramifications of a particular strike. More specifically, it investigates the gains and costs from a worker’s perspective, using the ex post data of three case studies of strikes that took place in 2010, involving the trade unions of Transportation Network (TRANSNET), Passenger Rail Agency of South Africa (PRASA) and Members of Automotive Manufacturers Employers’ Organisation (MAMEO). The findings indicate that for Transnet the present value of the net benefits and costs was negative, indicating that the strike was not profitable from a worker’s point of view, while it was indeed profitable as far as the PRASA and MAMEO strikes are concerned. The study also reveals that a breakeven number of strike days, appropriate to the peculiarities of each case, can be determined which can be used as a benchmark to monitor the length of the strike period.