Explain the relationship between labor market conditions and the probability of a strike occurring. What other factors do you believe might increase (or decrease) the incidence of strikes nationwide? (5 minutes)

Question

What will be an ideal response?

Answer 1

If the economy is strong and job opportunities are plentiful, employees may be more willing to go out on strike because there is less fear about losing their jobs. Hiring replacement workers will be more difficult in a strong economy. In a weak economy, however, jobs are scarce and there is significant anxiety about job loss as there are many available replacements. Ironically, it is usually when the economy is weak that unions would most like to strike as they are more likely to be asked for "give backs" at the bargaining table.
In addition to the state of the economy, there are several other factors that may increase or decrease the likelihood of a strike. The size of the employer's inventory and/or the strength of product demand will influence the employer's concerns about the possibility of a strike. When there is a large inventory of finished products ready for sale, the employer will be less concerned than when inventory is strong (particularly if demand is also strong). The degree of union solidarity present in the bargaining unit is also a factor that can positively influence the likelihood of a strike. Finally, the ability of the employer to move production to another location, either temporarily or permanently, will influence the likelihood of a strike.