Nova workboard

a blog from young economists at Nova SBE

Cartels, Trade Unions and the right to strike

If companies in Czech Republic create a price cartel, then they will be punished. But if it creates a cartel of employees in the form of trade unions, they can be rewarded. Is not that unfair?

Nowadays, employers must follow a number of strict regulations: the prohibition of discrimination the Labor Code, hygiene and safety regulations, fire regulations, regulations relating to the environment, etc. Workers are in fact protected sufficiently, and therefore, collective bargaining and right to strike is a relic of the 19th century [1].

If you steal something, violate someone’s property rights you will be punished. If you organize a larger group of people and steal, the penalty will be greater. If, as a company, you misuse its dominant position, then you will be punished. If you organize with other competing companies and create a cartel, you will be punished.

So if you refuse to work at your job, the employer can cancel your employment contract. If you violate the agreement, everyone will understand that, but if you organize and make the same thing with more employees, it is collective bargaining. Nothing will happen, and in practice you may even be rewarded with something in addition. Is it fair and correct?

Regarding the above, right to strike may work in the sense that employees will not be punished for the strike. On the other hand, the striking employees should be required to compensate the employer’s losses that were caused by the shutdowns. Also, material losses to property and stocks, including also profits lost and loss of company image as a reliable partner.

It is essential to mention that the work stoppage by employees is not justified by their intention to use the strike as the instrument to stop to work just because they don’t want to work. Employees on the other hand count on the fact that after the strike they will again be able to return to their previous jobs. Reasons for the strikes are arising largely from the economic and social conditions of work and are aiming through this, as corrective actions to affect improvement [2].

An employment contract, including remuneration, signed by all employees voluntarily, are implicating the employers agreement with it. If they decide to disagree with employment contract, they may submit a notice of termination of contract, let a feed by husband/wife, find another job or start a business [1].

Is there anything logically wrong? I think that present laws of Czech Republic and European Union are appropriate to the logic of the nineteenth century way of thinking.


Kateřina Čadinová






Author: studentnovasbe

Master student in Nova Sbe

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