Government mulls giving unions twice as long to strike

The proposed changes to labor laws may lead to increased union activity and potential strikes in various industries, which could disrupt business operations and hiring. Consequently, companies heavily reliant on manual labor or with a significant union presence might face challenges. Stocks of major employers in affected sectors could see short-term volatility as these changes take effect, particularly in labor-intensive industries like retail and logistics.

On the flip side, the reforms may result in improved conditions and higher wages for workers in the long term, potentially increasing consumer spending. Companies proactively engaging with unions and fostering good relations may outperform their peers as they avoid disruptions. Investors could consider stocks in industries that adapt well to union engagement and worker satisfaction.