At the macro and micro economic level, strike always has an impact on total sales, profits, and market share of individual company where the strike is being carried out by group of employees or trade unions. But not only did the strikes have negative impact on companies financial status, but the total output, sales, consumer spending, price level, trade deficit, and employment were all affected. Most of the economic activities depend on day to day running of business enterprises and movement of people. If these business enterprises and movement of people are being affected, this has a serious implication on overall growth of the country including the GDP growth.
The recent post financial crisis, many countries are facing economic down turn including budget deficit. Citizen of any country is well aware about financial implications of strike in this tough situation. There are inhabitants who are brave enough to go to work cite their country's high unemployment rate. Most of the countries in European Union, including France are in financial mess and citizen’s personal finances too. In this situation, strike just makes things inferior and it’s certainly not the best way to move on.
In layman’s language, strike is defined as a strategy used by group of employees in an attempt to force the authority to meet their demands. Strikes are generally discussed in terms of the economic nature of the events. Most often, strikes are resolved through the negotiation being initiated by any third party or government authorities. But in case of strike being carried out against a particular move initiated by the government, it's difficult to negotiate with the mass. In the event of a mass strike against the government move, the impact of such strike may hit public transport system, economic growth, money movement, consumer spending, and low foot prints at money generating areas such as malls and socializing places.
This paper reviews the literature on ongoing strikes in France for pension plan, for background information.
- Quote paper
- PGDM, Msc in Finance Vijayakumar Honnungar (Author), 2011, Financial implications of strike for retirement plan: A review of the literature, Munich, GRIN Verlag, https://www.grin.com/document/174246