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This is an urban legend, mostly believed in Spain and some countries in South America.

The legend is based on the premise that their way to make a strike would be to work much more than usual in some goods production, this would cause prices to be lower due to increased supply in the presence of constant demand, so the owners of the business would end up losing money (or making less money) because of that, due to usually planning goods production with the "just in time" method. In addition they would have to pay employees for that day of work and storage costs for excess production, which might be high.

I don't think this would work for every case, but maybe for some it would be plausible.

Would such a type of strike be able to do something similar for at least some cases? If so, in which ones?

We can consider that legally speaking there's no limit to no the number of goods that can be produced.

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Without the cooperation of at least mid-level management I dont think that such an approach can work even in theory. Management sets the quantity of ressources and intermediate goods the striking employees have at their disposal to use as inputs.

The theory is inconsistent in the sense that on the one hand it relies on assuming JIT (for its lack of large storage facilities for final products) to obtain the dumping of a large quantity of output on the market. On the other hand "no limit to no the number of goods that can be produced" implies either large storage facilities for inputs or that the company striking is Bertrand's water well.

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  • $\begingroup$ I'm explaining more properly the "no limit to the number of produced goods", as I think you have understood it in a way I didn't intend to. $\endgroup$ – mylket Jul 27 at 13:20
  • $\begingroup$ The ammount of input the employees can source sets an upper limit to the ammount of output they can produce. With JIT that limit is close to the initial production plan before the strike (no large storage facilities for inputs). Thus I dont see why I should change my response. Your edit doesnt say anything new. $\endgroup$ – Grada Gukovic Jul 27 at 13:54
  • $\begingroup$ I'm sorry, I misread your answer, obviously, you cannot produce more goods if your input is limited, for my question I was just considering that the input could also be bigger, it's not that big of a position to ask temporarily for more production input once you have an assigned budget, so yes, for this question we can consider that this people also participate in the strike (which could perfectly happen). This people also wouldn't make anything against contract or unlawful if they ask for more production input (after all, a big supply might be needed on certain occasions). $\endgroup$ – mylket Jul 27 at 22:22

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