An Inter-Industry Analysis of Strike Frequency

Abstract

that they predict variation in strike incidence by industry, some of the hypotheses developed in time series work will be included in this research. In addition, economic theory contains certain well established hypotheses which first and foremost predict significant inter-industry frequency differences (cf. Kerr and Siegal, 1954). Developing and testing such hypotheses introduces a new dimension to the econometric literature on strikes. This study examines strike frequency for 33 manufacturing industries over the period 1963-1967. The recorded level of strike frequency varied from an average of one strike per year in the tobacco industry to 185 per year in non-electrical engineering. The frequency statistics used refer to all stoppages irrespective of the way they are classified by cause in official sources. Although the hypotheses discussed in this paper treat almost exclusively a consequence of breakdowns in negotiations, the dependent variable is not restricted to wage strikes alone (cf. Bean and Peel, 1974). Almost all negotiations are likely to involve wage-related issues at some stage and to such a degree that they can be treated as if they are straightforward negotiations. Our empirical findings indicate that economic variables are very important in explaining inter-industry strike differences. Furthermore, both the internal characteristics of the bargaining unit and the economic environment within which it operates are essential to this conclusion. (The official classification of by cause is necessarily an arbitrary process relating it does to the reasons given for strikes, largely by employers. Negotiations are complex phenomena. The sparking point for a strike may be both superficial and peripheral to the underlying issues involved. This is not to say, of course, that a study of the immediate causes of strike action would not be valid and interesting in its own right (McCarthy, 1959). The available crosssection data on wage strikes would permit a sample of less than ten observations in this study. It should also be noted at this point that this paper makes no distinction between the interests of workers and trade unions nor between the interests of management and owners.)

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