The Rise and Fall of Hope and Change

The Rise and Fall of Hope and Change



Alexis de Toqueville

The American Republic will endure until the day Congress discovers that it can bribe the public with the public's money.
Alexis de Tocqueville

The United States Capitol Building

The United States Capitol Building

The Constitutional Convention

The Constitutional Convention

The Continental Congress

The Continental Congress

George Washington at Valley Forge

George Washington at Valley Forge


Sunday, December 25, 2011

America’s Public Sector Union Dilemma

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

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