Re:Amazon warehouse workers stage first-ever strike in the UK
by verbify on Wednesday January 25, 2023 @10:44AM
(#34519597)
> some portion of inflation is caused by increased labour cost. So by the time the strike demand is fulfilled, the next strike is in theory in the brewing
The word 'some' is doing heavy lifting. If they get a 10% rise, and that causes a 1% increase in inflation (assuming labour costs are not necessarily the biggest proportion of the cost of goods, and assuming companies eat some of the increased labour costs via less money to shareholders rather than raising prices for consumers), then there is not necessarily a reason for a second strike. I've pulled these numbers for illustrative purposes.
A vicious cycle can happen, but it also theoretically doesn't need to happen.
The word 'some' is doing heavy lifting. If they get a 10% rise, and that causes a 1% increase in inflation (assuming labour costs are not necessarily the biggest proportion of the cost of goods, and assuming companies eat some of the increased labour costs via less money to shareholders rather than raising prices for consumers), then there is not necessarily a reason for a second strike. I've pulled these numbers for illustrative purposes.
A vicious cycle can happen, but it also theoretically doesn't need to happen.