Public sector unionism has questionable justification. Unlike private sector workers, public sector workers do not bargain at arm's length with their employers. From the early days of public sector unionism, labor scholars were concerned that inelasticity of demand for public services would give excessive leverage to public unions. Hence, while many states and the federal government permit organization, they limit the right to strike. However, the labor literature did not anticipate the public choice effects of public sector unions. Public sector unions do not bargain at arm's length with their employer because they can contribute significantly to the removal of their employer (elected officials). Thus, there is unequal power between public sector employees, who have more power, and elected officials, who increasingly become their marionettes.Not bad for a special class of people that start at $52,000 a year.
Thursday, December 15, 2005
Possible N.Y. Transit Strike
Democracy Project explains: