We will hear more and more of this in Michigan as we get into the public debate on balancing this budget.
Governors, unions brace for battle
Thursday, February 3, 2011
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A discussion of policy, politics and culture in government and society.
I'm guessing because of our history of manufacturing, the Midwest still has the most highly unionized public sectors in the country. I thought it was interesting how the preceding governor and legislature in Wisconsin tried to push through a new contract for the public employees before the republican governor and legislature stepped in and made cuts. It didn't make it through, but it just shows how brutal the battle is going to be between the public sector unions who are trying to keep all of their bargaining rights intact and the new legislature set out to change them. Higher union membership = higher bargaining powers, if you decrease what the union can do for the employee, you are going to lose members. Unions with more members have more power as well, so with such a battle in sight for the unions of the Midwest, who knows if they'll be able to hold under the pressure...
ReplyDeleteI have experienced the weakening bargaining power of local unions who are not providing much reprieve for their members, so I can see how the new republican heavy legislator's and governor's stepping in around the country with that exact goal in mind, could inevitably do more damage to union membership and support as well as collective bargaining power...
I think the heart of this issue lies with the question: Do we want union control anymore? I believe that common sense legislation of worker's rights would negate the need for unions. Let each individual bargain for their worth. Unionization began in a time where workers were being overworked and underpaid to the point of quasi-slavery. This is no longer the case with increased mobility, and the ability to apply for most jobs in the comfort of your own home, and modern labor/anti-trust laws. Why not take bargaining out of the hands of a union and put it into the hands of the individual?
ReplyDeleteI couldn't really predict the future of unions, but if trends continue and the numbers keep declining I would assume that their bargaining power is declining. Once union leaders lose their bargaining power no one will have an economic incentive in paying someone to bargain on their behalf. I think it will run its natural course as the economy in America is tending to lose more and more of its industrial base to foreiegn producers.
ReplyDeleteI think the problem that needs to be seriously addressed is the state pension liabilities. Union members feel they are indefinitely entitled to a pension amount that does not accurately reflect the amount of funds that their states, corporation, or union pension funds have available.
States at a minimum especially those in education need to Mark to Market their pension assets. Use an honest actuarial return figure based on old school conservative estimates and bring their payments to retirees inline with their actuarial lifespan predictions. Their was a gross miscalculation of market returns on investments supported during good economic climates coupled with an underestimate of claims that have made ongoing pension liability payments by state governments increasing annually. I would address the pension liabilities first and let the unions continue their downward trend until their is a shortage in the labor supply(not happening anytime soon unless your a doctor or a nurse).
The idea that public unions could be forcing government to become more expensive and causing a loss of private sector jobs is rather scary. These are the same people who claim to be working for us, but instead, they are using their collective bargaining power to give themselves higher salaries and create more taxes for private sector businesses. If this is truly the case, then i agree that these laws need to be at least looked at, and perhaps modified. If public sector unions are truly hurting the economy, then they should definitely be modified.
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