Stock Market Tips 9

Does the company have labor problems?

Most companies, at some time or other, face labor problems. However, in most cases these problems are not very serious and they do not really disrupt the functioning of the company in a major way. The companies to avoid are those which have a long and violent history of strained management labor relations. In such companies, production is frequently disrupted, sometimes over prolonged periods of time. The Bombay textile strike in the early 1980s showed how a prolonged and violent labor agitation ruined the Bombay textile industry. We would advise you to keep away from companies suffering from chronic labor problems, and those which are located in areas where labor agitation has become endemic.