In Industrial Relations
There is always difficulty in fairly dividing the proceeds of a business between the business owners and the employees.
When a trade union decides to call a strike, both employer and the union members lose money (and may damage the national economy). The unionists hope that the employer will give in to their demands before such losses have destroyed the business.
In the reverse direction, an employer may terminate the employment of certain productive workers who are agitating for higher wages or organising a trade union. Losing productive workers is a setback to both the business and the employees but this can serve as an example to others and thus maximise employer power.
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