Can someone help me answer this ?? Thanks iners. W employees unforeseeably go on

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Can someone help me answer this ?? Thanks

iners. W employees unforeseeably go on strike to force the management to buy foreign machines which will improve the working conditions. However, it is not possible to obtain these machines for the time being. Because of the strike, Steel is unable to fulfill its order. Car, a customer of Steel, sues Steel for breach of contract. What is Steel's defense against Car? Can Steel win? 2. Steel Inc. produces high quality steels for its customers worldwide. Steel's

Explanation / Answer

This is an interesting question. This is actually a live case which happens in a lot of corporates, especially corporates with factories, where labour strikes often happen due to conflicts in working conditions/wage levels.

Let us solve this using simple logic. If you are an employee employed in a factory, you are eligible for basic working conditions (depending on the country of course). You should be paid as per government standards, and subject to a hygienic working environment, right?

In this case, the employees were not happy with the working conditions, and they would have intimated the management in advance. There must have been multiple rounds of discussion with Steel Inc. management, and on unsatisfactory response, the employees would have resorted to a strike.

When it comes to a third party who is involved, when they have contracted with Steel Inc. for a supply contract, any issue internal to Steel Inc. is not their concern. They are only concerned with what they have ordered, payment for that order, and getting delivery of that order. If there is an internal issue at Steel Inc, it is upto Steel Inc. to ensure there is a contingency plan - they should have taken care of a contingency plan to take care of a strike situation (by quickly employing contract workers, for example).

Car's defence against Steel Inc. would simply be that any issue, internal to the organization, should be handled by Steel Inc. and customer delivery should not get affected by this. This would be a breach of contract, and yes, Steel Inc. is in a bad position!

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