You are on page 1of 4

2.2 No Income For Employer. One of the relative reason of short strike is there is no income for employer.

When the strikes occur, the main employer and the whole community will felt the effect of lost wages and hostility between employers and workers. This will then may cause the employers lose their business. While some companies are strong enough to survive the damage caused by a strike, they can still lose market share, and weaker businesses could go under as a result of industrial action (Tan, 2011). Besides, the employer is likely to lose money due to delayed service to clients or to lost production time. Once the strike is over, even the business has not been closed down by it, the feelings of hostility resulting from the strike can severely damage teamwork, productivity and profitability. For example in April 5, 2012 in London a new Policy Voice survey of 991 members of the Institute of Directors reveals that 82% of business leaders expect the proposed fuel strike to have a negative impact on their business. The Institute of Directors urges both sides of the industrial dispute to settle their differences swiftly and without strike action which would cause huge disruption to the wider economy (Tan, 2011). Another example is one of the big company in South Africa has become an extremely competitive one, but sadly losing business to a competitor due to the strikes that occur recently. Meanwhile, when there is no income and profit, the employer will seek a solution to end up the strikes. This is because it is clear that the strike would do a lot of damage and cause a huge amount of disruption to people who are already working extremely hard to keep the wheels of the economy turning (Gardapee, 2010). With this situation, it will pressure the employer to settle the dispute so that the company will gain back the income and profit.

Example Of Cases In Malaysia. On May 2 2012, more than 2,000 container lorry drivers went on strike for more than 24 hours since disgruntled over the hike in charges imposed on them by depot owners for pick up and drop off of containers to and from the port (Bernama, 2012). They disgruntled over the hike in charges imposed on them by depot owners for pick up and drop off of containers to and from the port. The strikes have caused Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) members incurred losses of over RM50mil. The strikes also have given a negative impact especially to those involved in export and import business. In order to settle the dispute, Transport Minister, Dato Seri Kong Cho Ha has settled the strike through memorandum. One of the terms and conditions in their memorandum of understanding is that depot operators agreed to give credit to hauliers so that drivers do not need to pay cash. The depot operator also agreed to speed up their services. The Minister also added he did not want operations, especially international shipping, to be affected by the protests. 2.3 Fear Among Employees Lose Their Jobs. Another relative reasons of short strikes is fear among employees lose their jobs. A work stoppage is generally the last step in a labour-management dispute over wages and working conditions. Because employees are not paid when they go on strike and the employers may lose their productivity (Gardapee, 2010). If the employees continue with the strikes, they might lose their jobs because when the strikes occur, the employer may continue operating the business and they can hire the replacement workers. If the employees continue with the strikes, it might also cause bankruptcy to the employer because the employers may decide to take stern action against all who participate in labour strikes. Some employees may be let off with a warning and in extreme cases, the workers may be laid off (James, 2011). This leaves families without a source of income. Desperation eventually sets in, with some people becoming homeless due to failure to pay rent while others turn to crime. Because of this awareness, the employees might refuse to continue with the strikes. Although there is a strike fund that provides some money to strikers every week, the amount doesnt make up for lost wages. The union members who strike for long periods of time can lose benefits such as sick pay, vacation and medical insurance.

Besides, moral is likely to deteriorate if the strike drags on. Companies will be watching for this problem with labour union members. The employees may start feeling the strain from loss of wages, benefits and available work (James, 2011). Relationships feel the strain when a wage earner is no longer bringing home enough money to feed the family or pay the bills. On top of that the communication with the company may also stop. This can affect all the striking members. Companies can choose to hire workers to replace the striking members. When and if the strikers return to work, there will be a strain between the members and the management team caused by a strike (Gardapee,2011). The workers hired during the strike can keep their jobs even after the strike is over if the company chooses, which means the labour union members will lose their jobs. The company does not have to rehire the union members. Meanwhile when there is awareness and feeling of fear losing their jobs, the employees may decide to not continue with the strikes (James,2011). They will make an agreement with the employer to settle the dispute because the strikes normally will removes the source of profits and injures company. Example Of Cases In Malaysia. Based on the same case above, On May 2 2012, more than 2,000 container lorry drivers went on strike for more than 24 hours since disgruntled over the hike in charges imposed on them by depot owners for pick up and drop off of containers to and from the port. However 22 container lorry drivers have been fired by the employer because of the strikes that had been occurred. The workers were very upset and felt very disappointed with the decision. The other workers are still upset over the arrest of 25 of their strikers who were accused of vandalising trucks that refused to join the strike. According to a source privy to what had transpired at the meeting, a final solution was not worked out but Miti has given its assurance that it will hammer out a conclusion to the problem on condition that the strike is called off. It is understood that several depots at Port Klang have agreed to revert their gate charge back to RM5 in the interim. The strike was called on Wednesday by the truckers frustrated at the long waiting time at depots coupled with the decision to raise gate charges from RM5 to between RM and

RM20. The drivers who are paid based on commission per trip could previously do up to four trips a day, however, the congestion at the depots became progressively worse, especially in the last two months.

References Pamela Gardapee, 2011 : How Do Strikes Affect Labor Union Members?, http://yourbusiness.azcentral.com/strikes-affect-labor-union-members2432.html Ivan Tan,2011 : Strikes Can Lead Disaster For Both Parties http://www.skillsportal.co.za/page/features/contributors/ivanisraelstam/730676-Strikes-can-mean-disaster-for-bothparties#.USCEFfLd1hE Andrea James, 2011: Effect on Strikes ww.time.com/time/magazine/article/0,9171,826824,00.html