Strike

Background

A strike is an organized, typically formal, withdrawal of labour by a group of employees, most commonly initiated by members of a trade union. It serves as a form of protest, usually aimed at enforcing demands related to wages, working conditions, or other employment terms.

Historical Context

Strikes have been part of labour relations for centuries, with early examples dating back to the Industrial Revolution. As labour movements grew, strikes became common tools for unions to negotiate better terms and working conditions for employees. Historical milestones, such as the Great Railroad Strike of 1877 and the 1926 United Kingdom General Strike, illustrate the significant impact strikes can have on both economic and social fronts.

Definitions and Concepts

A strike can be categorized based on whether it is officially sanctioned by a union:

Official Strike: One that is called or recognized by a union.
Unofficial Strike: One that is started without union authorization. An associated term is the no-strike agreement, wherein workers agree not to strike for a certain period, usually in exchange for certain concessions.

Major Analytical Frameworks

Classical Economics

Classical economics typically views strikes with a critical lens, seeing them as a disruption to the supply and demand equilibrium in the labour market.

Neoclassical Economics

In the neoclassical framework, strikes may be analyzed as a failure in labour negotiations or market imperfections, including the potential mismatch between the supply and demand for labour.

Keynesian Economics

Keynesian economics considers the role of strikes in aggregate demand and supply dynamics, and how they might affect macroeconomic variables like employment and output.

Marxian Economics

Strikes are a central concept in Marxian economics, viewed as part of the class struggle between capital (owners of production) and labour (workers).

Institutional Economics

From the perspective of institutional economics, a strike is influenced by and impacts the institutional arrangements and collective bargaining processes.

Behavioral Economics

Behavioral economics may examine the motivations and incentives behind strikes, looking at factors such as perceived fairness, group behaviour, and negotiation tactics.

Post-Keynesian Economics

Post-Keynesians view strikes through the lens of power dynamics and the distribution of income among social classes, often emphasizing the crucial role of labour unions.

Austrian Economics

Austrian economics is generally critical of strikes, viewing them as a constraint on the voluntary exchange and flexibility of the labour market.

Development Economics

In the context of development economics, strikes can reflect underlying issues in labour markets and economic development, such as poverty, inequality, and weak legal frameworks for workers’ rights.

Monetarism

Monetarists might analyze the impact of strikes on inflation and monetary variables, considering how prolonged strikes can disrupt supply chains and production.

Comparative Analysis

Strikes vary in form and outcome depending on country-specific industrial relations systems, union strength, and legal frameworks. For example, strikes in France, with robust union support and social welfare frameworks, can differ significantly from those in the United States, where labour unions may have less power.

Case Studies

The Great Railroad Strike of 1877: Often cited as the first major strike in the United States, marking significant social and economic impact.
The 1926 United Kingdom General Strike: One of the largest strikes in the British history, which illustrates the power and challenges faced by the labour movements.

Suggested Books for Further Studies

Labor’s Great War: The Struggle for Industrial Democracy and the Origins of Modern American Labor Relations, 1912-1921 by Joseph A. McCartin
Strike! by Jeremy Brecher
The Economics of Trade Unions by H. Gregg Lewis

Collective Bargaining: The process through which workers, through their unions, negotiate contracts with their employers to determine their terms of employment.
Lockout: An action taken by employers to prevent employees from entering the workplace during a dispute.
Industrial Action: Broad term encompassing various forms of protest by employees, including strikes, work-to-rule, and go-slows.
Trade Union: An organization formed by workers to collectively defend and advance their interests with regards to wages, working conditions, and other employment aspects.