Tuesday, August 26, 2008

GPC Strike


The world's largest grain processor is on strike. The impact on the local culture and climate is evident. Labor and management fight in the stores and community events. Muscle has been brought in to lockout workers. A link to the story is here. Make sure you read the comments.


A union tries to influence the elasticity of the MRP curve. Many observers believe that the workers are being paid an amount greater than their MRP and this is attracting many scabs to apply for GPC positions. The union's goal is to obtain higher wages but this will come at a cost of unemployment for some members. There will be many costs and benefits as the local economy works to equilibrium.

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