Saturday, March 5, 2011

The Case Against Public-Sector Unions

Unions have their place in a free economy. In the private-sector, union leadership and company management can work together to achieve their mutual best interests. It's a win/win if they succeed and, if they fail, the company goes in search of less expensive labor or the company shuts its doors. The consequences can be devastating to many but the larger economy continues on, uninterrupted, and the displaced workers are eventually absorbed by other employers.

On the other hand, collective-bargaining in the public-sector has obvious shortcomings. First, public-sector unions use a portion of their members' dues to influence or determine the election of public officials who will decide the composition and structure of the union's compensation and benefits. This is clearly a conflict of interest and undermines the public trust of elected officials and public workers. Private-sector unions have limited influence over the appointment of company managers short of owning significant equity in the enterprise.

Second, when the average public-sector employees' compensation and benefits package exceeds the average package for the private-sector worker, we have begun to diminish the incentive for workers to find employment in the private-sector. This will eventually result in the gradual decline and ultimate destruction of the economic engine from which flows our prosperity and the taxes used to pay the public-sector employee.

Third, on the rare occasions when negotiations between public-sector unions and elected officials reach a stalemate, the unions can resort to methods and tactics which can hold the local, state or national economies and respective taxpayers hostage to their demands -- hardly the actions of one who chose public service over personal opportunity. No private-sector union has ever wielded such disruptive power.

Finally, public-sector workers have traditionally served at the pleasure of the taxpayer, as humble servants who provide essential, common services so others can participate and contribute to the creation of our national wealth. We would be wise not to obfuscate their distinctly different roles in our national vitality and welfare.