Wage Disputes, Labor Strikes Proliferating Internationally

Rising inflation and cost of living have led to a wave of labor disputes and strikes around the world, with workers demanding higher wages and better working conditions.

Large wage disputes and labor strikes are becoming more frequent around the world as high inflation and rising cost of living continue to impact workers.

Germany, for example, experienced a record number of industrial disputes in 2023. Reuters reports that the country tallied over 1.5 million working days lost due to labor strikes — marking the highest level since 2015.

The Institute of Economic and Social Sciences (WSI) reported that high inflation and reduced purchasing power were the primary drivers of these disputes. A study by WSI suggests that significant industrial action may continue this year, particularly in the metal and electrical industries, pending union negotiations.

German sectors most impacted included railways, local transport, airports, and German airline Lufthansa. Despite the substantial increase, Germany ranks 8th in Europe for days lost per 1,000 employees due to strikes. The country reportedly falls behind Belgium, France, and Finland.

In the U.K., around 1,500 Tata Steel workers will begin an indefinite strike on July 8, as announced by the trade union Unite. The strike reportedly responds to Tata Steel’s plans to shut down two blast furnaces and cut up to 2,800 jobs at its Port Talbot and Llanwern sites in Wales. Tata Steel expressed disappointment, citing daily losses of £1 million due to its unstable steelmaking asset.

The rise in wage disputes and labor strikes is also trending in North America.

In Canada, carrier WestJet Airlines announced that it is working to resume normal operations after the Aircraft Mechanics Fraternal Association (AMFA) union rescinded its strike notice. The union and WestJet have reportedly agreed to return to the bargaining table following demands for improved working conditions and higher salaries. This dispute had led to the cancellation of 40 flights from June 18-19, affecting 6,500 customers.

In the United States, Reuters reports that American Airlines and the Association of Professional Flight Attendants (APFA) have not reached a new contract agreement, as reported by the union on June 21. APFA, which represents approximately 28,000 flight attendants, expressed growing frustration and suggested a potential strike. However, a strike requires permission from the National Mediation Board (NMB).

These international labor disputes reveal how work dynamics are changing, and how unions are becoming more accepted. The trend can be observed in the U.S. with examples like the United Automobile Workers (UAW) union expanding their influence across the nation.

There is a need for large and industrial employers to address employee concerns proactively. As wage disputes and labor strikes proliferate, small business managers and business leaders must navigate these challenges with transparent communication, fair compensation practices, and honest employee relations strategies.

The increasing frequency of industrial actions reflects a global demand for broader changes in labor laws and workforce treatment. Despite these clear and consistent pleas for change, big corporations continue to win labor disputes in the U.S. court system.