Nobody downloaded yet

Impact of Labour Unrest for Business (Production) - Essay Example

Comments (0) Cite this document
 Impact of labour unrest for business (Production) By Insert Your Name Presented to Course Institution Name, Location Date Due Impacts labor unrest in a business production Labor unrests in business production are basically caused by the economic costs of industrial relations such as strikes, slowdowns or work stoppages…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.2% of users find it useful
Impact of Labour Unrest for Business (Production)
Read TextPreview

Extract of sample "Impact of Labour Unrest for Business (Production)"

Download file to see previous pages Labor unrests are generally organized and strike actions carried out by labor unions in the case of the failure of solving such labor disputes. The employees and the overall workforce alter the normal production routine process, thus impacting the shareholders of the production business; the key reason for these unrests is the workers articulating for the increase in wages and labor rights (Silver, 2003). The impacts of labor unrests on a production firm or a business can be discussed as follows. Lower Production levels Labor unrests have a significant impact on the businesses dealing with production, as they lead to lower production levels. Strikes by workers affect greatly the production levels, because most of the production businesses do not have production schedules where one day stock is taken as surplus. Thus labor unrests can lead to the drastic decrease in the production volumes, which can impact the key wholesalers and retailers negatively, as the business production is a countrywide supplier (Silver, 2003). Shift in consumer demand Labor in the production business causes shifts in the demand of consumers, notably in the case of strikes. Typically, most of the manufacturing companies keep a significant volume of inventory in their warehouses purposely, as a precaution against labor unrests, which can only represent not more than a month inventory. This production schedule approach ensures that companies continue with their normal production and supply operations for some time after the unrests, thus providing a period for solving the labor dispute without much effect on their business operations (Silver, 2003). In the case of the dispute taking long to be resolved, consumers may wait for the return of the normal operations or shift to the available competitors. Overlap impacts Labor unrests of higher degree of magnitude such as nationwide strike have a direct as well as an indirect impact on the related markets. Such labor unrests are characterized by work stoppage in the production manufacturing company, and this has a great impact on its major outlets and other stakeholders that have frequent transactions with the company. Labor unrests can lead to a standstill of operations in its markets. Companies operating as providers of complimentary services to the production company are the highly affected, because its services or commodities will loose it major market share due to the slowdown of operations at the production company’s plants. This situation may lead to these stakeholders’ decision to go to other markets and the suppliers’ decision to go to the market outlets (Silver, 2003). Loss of revenue and profits Labor unrests cause slowdown and, at times, standstill in the operations at the manufacturing plants. These standstills and slowdowns have an impact of reducing the volume of sales. Lower volume of sales translates into lower revenue realized from them, leading to lower profitability as compared with the period of labor stability (Silver, 2003). This impact is commonly expected to extend to the major outlets, as the level of supply will go down and the company is a nationwide distributor. In this case the company will go at a loss, since the overhead fixed cost will remain the same, straining the less realized revenue and the profits. Impact on employee performance An ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Impact of Labour Unrest for Business (Production) Essay”, n.d.)
Impact of Labour Unrest for Business (Production) Essay. Retrieved from
(Impact of Labour Unrest for Business (Production) Essay)
Impact of Labour Unrest for Business (Production) Essay.
“Impact of Labour Unrest for Business (Production) Essay”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Impact of Labour Unrest for Business (Production)

The 2008 Tibetan Unrest

...leading to the Tibet unrest (Losada 357). Chinese propaganda terms Tibet as a backward and remote place. However, the Chinese efforts to control Tibet by use of brutal crackdowns to economic employment have evidently failed. Despite all the decades of patriotic education introduced by the Chinese government, Tibetans still give reverence to the Dalai Lama and perceive themselves as completely Tibetan. Police officers in the region are all Han and so are the bureaucrats (Losada 345). The nexus of religious and political power The nexus between religion and politics is evident in many Islamic and Buddhist societies as it is in the Tibet unrest. The Buddhist religion has had an impact no...
11 Pages(2750 words)Research Paper

Business management - labour law

...?Labour Law Whilst section 14 of the Equality Act can be criticised on a number of grounds, the section must be brought into force in order moreeffectively to combat discrimination in the workplace Introduction: With the global development, the employment landscape and the subsequent inter-relationship between employers and employees is changing at a constant and rapid rate. The dynamics of such a relationship has a significant impact on the manner in which organizations function. Hence laws such as Employment law or the Equality laws are brought into force in order to ensure a healthy and symbiotic relationship between employees and employers and to eliminate or prevent the occurrences of discriminatory practices at the workplace... by the...
10 Pages(2500 words)Essay

The Impact of Globalization On Labour Markets

...of the positive aspects are increases in the average real wage rates, proper and efficient allocation of factor resources, collective power of the labour force and a remarkable fall in the rate of unemployment. An indirect impact have also been assessed is the rise in the economic growth rate which in turn is reflected through an increased national income and thus, a rise in the rate of capital accumulation in the concerned economy. With a high rate of capital accumulation, the factor productivities are bound to rise which must also be mirrored over the labour productivity figures and thus eventually higher wage rates for workers. On the other hand, the...
25 Pages(6250 words)Essay


... on quota coverage from a high range of 90 percent to 10 percent is directly associated with a decline of 2-3% in employment. Harrison and Currie in 1997 found out that almost all manufacturing firms running throughout Morocco remained unaffected due to reduction in tariff and quota elimination. According to Erlat (2000), imports and exports in Turkey have enabled some changes in employment. However, they found that change in employment was not made only by trade, but also through productivity change and domestic consumption. Zoabi and Saure (2008) gave another paper analyzing the impact of contraction and expansion of the sectors on intensive use of female labor and their participation. If the trade expansion is international... the two...
9 Pages(2250 words)Essay

Child Labour in Pakistan. Business Ethics

...nations also tends to be gender biased. Among poor families, when there is only enough money to send one or two children to school, it is the male children who will be selected. Female children are then expected to work in order to sustain their brothers in school as well as providing for the family. This issue does not only affect the companies functioning in developing nations. With globalisation, many multinational corporations have benefitted from the chance to expand to overseas locations. This means that they have the opportunity to take advantage of cheaper production that results from the use of child labour (Parker and Harkin 2007). In some cases, the foreign partners with which multinational...
10 Pages(2500 words)Essay

Business Management Production Management

...Running head: ASSUMING THE ROLE OF A PRODUCTION MANAGER IN A SMALL MACHINE SHOP Business Management Business Management Part a) One can use CAD, CAE, CAM, CIM, and FMS to manufacture better parts more easily. This so because they computer based tools that assist engineers and architects and other design professionals in their design activities. The software is used to develop products that are more decent than when they are made manually by use of human hands. It is even faster to produce consumer goods using this software and every manufacturing firm has been using them. b) If your final product requires several unique subunits that are all produced...
3 Pages(750 words)Essay

Old Labour/ New Labour

...they hold. The concept of a 'stakeholder society' is quite prominent in New Labour thinking. As noted above, New Labour thought also embraces the notion of the "Third Way", although critics pointed to the lack of any concise statement of its meaning, and the term later fell from use. Labour's economic policy sought to balance the laissez-faire capitalism of the Thatcherite era with measures that would lessen or reverse their negative impact on society. One of the most popular policies introduced was Britain's first National Minimum Wage Act, a policy negotiated by Labour's affiliated trade unions in return for accepting the change to Clause IV of the...
6 Pages(1500 words)Essay

Impact on labour law

...Which an Employee can suspend an Employee. An employee can be suspended by an employer from work under UK employment law. These include suspension under maternity grounds, suspension for medical reasons and lay-offs. Lay-Offs: When business is incurring losses concurrently or when there is an economic recession, then management may suspend employees by laying-off them subject to conditions in the employment contract. A reasonable compensation has to be paid by employer to employees according to limits prescribed in the law as redundancy allowance during the period of lay-off. For complete period during the period of lay-off, majority of the employees are entitled to receive guarantee payment from their employees....
10 Pages(2500 words)Essay

Meat Production Business in Ukraine

...that government policies, labour regulations and trade policies are also considered as a political factor. At the same time, Kobuta & et. al. (2012) claimed that the government of Ukraine provides certain tax exception to the meat production businesses of the Ukraine, in the aim of enhancing the productivity of the country. Thus, it can be claimed that the political condition of the Ukraine is appropriate for the meat production business (Kayumi, 2013; Kobuta & et. al., 2012). Economic Factors Simultaneously, economic factors are also creating a direct impact on the business in a nation, which...
21 Pages(5250 words)Research Paper

Industrial Unrest in Abu Dhabi

...that the parties involved are willing to come to the table and have a civil discussion is also very encouraging. This is a good indicator that the conflict will soon be put to rest. Willingness to talk and negotiate is the first step to solving any conflict. Weaknesses There are quite a range of weaknesses in the labour environment in the Abu Dhabi as shown by several surveys some of which were sparked by the recent strikes by worker most of who are migrants. One thing that contributes to the weakened working conditions isthat thereseems to be a breakdown in communication between the employers and employees. Weather deliberate or not it is a major cause in employee unrest (Williams, 2014).The workers...
6 Pages(1500 words)Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Impact of Labour Unrest for Business (Production) for FREE!

Contact Us