Employees, before you go on strike over money, think through the gain versus loss.
For example, let’s say you are earning 600/week. That’s $15.00/hr. And the company has offered a 3% raise. However, your union wants a 5% increase in wages.
If the parties are unable to meet in the middle, it’s not unexpected for employees to go on strike. Let’s say that the strike lasts four weeks. At the end of the strike, the two parties are able to openly settle in the middle, at 4%.
Everybody wins, right? Not so fast. Let’s break down the math for a moment to better understand the gains and losses you face after the example set forth above.
Here’s the calculation. You would lose $600 per week, for four weeks. This equals $2,400 loss.
In addition, you lose the $18, which was the 3% offer for the 4-week period, which brings the total to $2472 loss.
Now, the settlement does increase your wages 6 dollars. So, take your gain of 6 and divide it into your $2,472 loss. You’ll see that it would take 412 weeks for you to break even.
3.5 years for you to break even.
It’s not uncommon for employees to look past this calculation. It becomes clear at the loss, who suffers.
Take this as a cautionary tale. The next time you’re debating whether you agree to go on strike, please crunch the numbers. Make a decision that benefits you in the long run. (Don’t follow the crowd if it’s not beneficial).
If you’d like to talk further about this calculation, of if you’re currently debating a strike, reach out to Koppekin Consulting, Inc.