Cost and Benefits of Industrial Action

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Contents 1 Costs and Benefits of Industrial Conflict 1.1 Financial Costs 1.2 Personal Costs 1.3 Social Costs 1.4 Political Costs 1.5 International Costs 1.6 Benefits

Costs and Benefits of Industrial Conflict

Financial Costs

• Loss of production and reduced productivity due to bans, go slows etc
• Lost market share to domestic and foreign competitors. Bad rep gained from prolonging disputes
• Employees lose in terms of wages and entitlements and loss of employment

Personal Costs

• Increased tension in workplace
• Low morale, job dissatisfaction
• Increased resentment, breakdown in communication can lead to absenteeism, labour turnover and fall in productivity

Social Costs

• Tension and dissatisfaction at work can lead to breakdowns at home – even domestic violence
• Vandalism, drug and alcohol abuse can directly or indirectly result form industrial dispute

Political Costs

• Challenged or damaged political reps to internal political party disagreement
• Public opinion of party may be damaged due to mishandling of issue

International Costs

• Lost markets and market share because business may gain bad rep as an unreliable supplier
• Productivity level drops increasing financial costs, which makes Aust businesses less competitive against efficient overseas businesses.
• Long-term effect on the balance of payments as export revenue is lost

Benefits

• Provides an opportunity for workers to express their dissatisfaction
• New methods of doing things, changes in technology and techniques
• Change in work and management practices can increase productivity
• New communication lines can be opened between workers and management

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