Could a "Japanese-style strike" work as it's supposed to? Under what conditions?
Without the cooperation of at least mid-level management I dont think that such an approach can work even in theory. Management sets the quantity of ressources and intermediate goods the striking employees have at their disposal to use as inputs. 

The theory is inconsistent in the sense that on the one hand it relies on assuming JIT (for its lack of large storage facilities for final products) to obtain the dumping of a large quantity of output on the market. On the other hand "no limit to no the number of goods that can be produced" implies either large storage facilities for inputs or that the company striking is Bertrand's water well.