What happens to profits when a strike occurs?

When a strike occurs, the primary consequence is that production halts, leading to a significant disruption in the normal operations of a company. During a strike, neither management nor workers are able to engage in regular business activities, which results in the organization not generating revenue. This lack of production typically means that profits are either lost or severely diminished for the duration of the strike.

While management might maintain a certain level of fixed costs during a strike, overall, the absence of production and sales leads to a situation where profits fall to zero or decrease significantly. Additionally, employees on strike are not receiving wages, which further emphasizes that neither side profits during this time. The earnings and financial stability of both parties are negatively impacted due to the halt in operations. As a result, it is clear that strikes result in a loss scenario rather than a profit for any party involved.