Some large corporations and government divisions have labor unions and I never really understood how those work…
They can stop a whole corporation or public infrastructure unless their demands are met, but then, why can’t they have unreasonable requests?
In: Economics
Workers on strike aren’t being paid. The union may keep a reserve of cash to help workers out, but the payments are usually not very much, and they don’t have an unlimited amount. So if they can’t easily come to an agreement, it comes down to who breaks first – the company that’s not making any money or the employees who aren’t getting paid.
And at least in the US, companies can generally hire replacements for striking workers. So if they think they’re never going to come to an agreement, they can replace everyone.
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