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What do workers want?

  What do workers want? Daniel McKeever, a professor of management at Binghamton University in New York, says the writers and actors unions have two main grievances. One is an inadequate share of streaming revenue, and the other is the threat of replacement by artificial intelligence (AI). He says the Southwest Airlines Pilots Association (SWAPA) is considering striking over excessively long days, short rest periods, a lack of cost-of-living raises and unreliable IT systems that often lead to unnecessary flight delays and cancellations. Johann Lee is the director of research at AlphaCore Wealth Advisory, a California-based registered investment advisor. He said in an email interview that markets are expecting moderate CPI growth — around 2.2%.
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What does this mean for share prices?

  What does this mean for share prices? McKeever says that the stock market will likely reward companies that break strikes in the short term — by waiting out their workers or bringing in nonunion replacements. But the question of whether that’s a sustainable strategy is more complicated. Concerning media companies, a prolonged strike could turn off viewers — as it historically did during lockouts in major-league sports. “If you’re relying on replacement labor … does your product suffer? And if so, will you see that downstream in terms of lower revenues, lower demand and eventually lower stock prices?” McKeever says. He says Southwest could face a similar tradeoff if it tries to break the SWAPA strike. That might make shareholders happy in the short term, but it could degrade Southwest’s product in the long term — with potentially serious consequences. “Until a catastrophe happens as a result of all that [pilot schedule] optimizing, shareholders love it,” he says. Term of the month...
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