From The Heritage Foundation and AEI:
Budget & Taxation
America’s Public Sector Union Dilemma
by Lee E. Ohanian
American Enterprise Institute
November 28, 2011
There may be considerable savings from state and local government reforms that systematically develop competitive compensation analyses. Bringing public sector wages closer in line with private sector wages by reducing them by 5 percent can reduce state fiscal deficits considerably. Compensation analyses should also take into account other beneficial components of public sector employment, including much greater job security. Public sector unions must understand that taxpayers will no longer accept uncompetitive agreements with unions. Rather than continue the union model of yesteryear in which unions focus on maximizing the size of the pie that members can receive, unions should understand that increasing wages for their members requires increasing productivity and reducing costs. Unions that can follow these principles will succeed, while unions that cannot will continue to come under fire.
URL: www.american.com/archive/2011/november/americas-public-sector-union-dilemma
Budget & Taxation
America’s Public Sector Union Dilemma
by Lee E. Ohanian
American Enterprise Institute
November 28, 2011
There may be considerable savings from state and local government reforms that systematically develop competitive compensation analyses. Bringing public sector wages closer in line with private sector wages by reducing them by 5 percent can reduce state fiscal deficits considerably. Compensation analyses should also take into account other beneficial components of public sector employment, including much greater job security. Public sector unions must understand that taxpayers will no longer accept uncompetitive agreements with unions. Rather than continue the union model of yesteryear in which unions focus on maximizing the size of the pie that members can receive, unions should understand that increasing wages for their members requires increasing productivity and reducing costs. Unions that can follow these principles will succeed, while unions that cannot will continue to come under fire.
URL: www.american.com/archive/2011/november/americas-public-sector-union-dilemma
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