Capitalism is Survival of the Fittest, That's the Global Standard.
The Strike of the Labor Union at Sogo-Seibu, Resisting Against It, Resembles Don Quixote Charging at Windmills.
Seven & i Holdings is selling its subsidiary, the major department store chain "Sogo-Seibu."
The buyer is Fortress Investment Group, an American investment fund that collaborates with the major electronics retailer Yodobashi HD.
In response, the labor union of Sogo-Seibu conducted a strike in protest against the sale.
There are likely various reasons known only to the parties involved.
However, it's quite typical of Japan for workers to go on strike in opposition to M&A deals.
It makes sense to strike against management who, like during the high-growth period, don't share profits with workers and seek better labor conditions.
Nevertheless, when labor unions oppose management decisions to divest failing businesses in the realm of capitalist competition, they might worsen the situation.
This could be playing right into the hands of the fund.
A business defeated in competition, now facing labor issues.
As a fund, not buying at an even lower price might lead to stakeholder dissatisfaction.
Yet, being clever, the fund might have already factored in a "price adjustment clause" and may only need to trigger it.
The fund could also nullify the agreement with the seller, Seven & i Holdings.
That might be pre-embedded in the agreement terms.
However, since Yodobashi seems eager to acquire quickly, they probably won't go that far.
On a tangent, strikes just before M&A transactions like this one could lead to situations where cancellation fees are claimed due to reservation cancellations.
The fund could merely collect liquidated damages due to the strike and say goodbye.
Later, they could patiently buy low in a scrap sale conducted under the "rule of law" until the target company goes bankrupt.
Capitalism is survival of the fittest. That's the global standard.
In this case, due to the urgency of the matter and the friendly nature of Japan's Yodobashi as the end user, Seven & i Holdings likely benefited.
The strike by the "Sogo-Seibu labor union" resisting this is like Don Quixote charging at windmills.
Labor unions are relics in the face of the common ideologies of the Western countries: freedom, democracy, and capitalism.
The phrase "Workers of the world, unite!" feels nostalgic.
