Tuesday, February 26, 2013

How Should Public Sector Unions Be Reformed?

     Last time I considered the need to reform public sector
unions. I barely got into considering the possible reforms.  This
time I will dig a little deeper.

     I briefly mentioned the need to eliminate exclusive
bargaining rights.  Unions should not be allowed to force
representation on to anyone who doesn't want to be represented. 
Likewise, unions shouldn't be forced to represent non members.

     What might this accomplish?  I will use teachers' unions
as an example.  Most union contracts require the same pay scale
for all teachers.  Tax collectors and garbage collectors don't
perform the same job merely because they are both called
collectors.

     Teachers don't all perform the same job merely because
they are all called teachers.  There is little similarity in the skills
of phys. ed. teachers and science teachers.  They have different
training, different skills, and compete in different job markets. 
The same is true of history teachers, English teachers, and many
others.

     The one size fits all pay scale doesn't work well.  It has
created a shortage of science and math teachers for so long as I
can remember.  The unions didn't create the one size fits all pay
scale.  They do cling tenaciously to it.  One claim is that all
teachers put in the same effort, thus all should get the same pay. 
This is bogus.  Employers pay for production, not effort.

     With teachers able to opt out of union representation
those who have skills more valuable than average would have
the opportunity to negotiate higher pay. (Please note, right to
work doesn't allow employees to opt out of union representation. 
All employees are still represented by the union.)  Schools
would have the opportunity to employ teachers who would not
accept the lower pay.  This would also pressure unions to
negotiate contracts with higher pay for teachers with skills that
command higher wages in the market.

     Successful enterprises must be managed to efficiently
produce products.  Any enterprise whose main mission is the
short term benefit of its employees is headed for trouble. 
Teachers' unions, and most other unions, have far too much
power over dismissal of poorly performing employees.  This too
must change if government enterprises are to efficiently provide
quality services.

     Employers, government or otherwise, must balance many
interests.  Private employers must please the customers,
investors, employees and suppliers.  In the unfree markets we
now have, they must also put much effort into pleasing
government bureaucrats.

     Generally, public employers can be cavalier, for a while
at least, about pleasing the taxpayer-customers.  Government
enterprises are even more dominated by bureaucrats than are
most private enterprises.

     The point is that any enterprise that heavily favors
pleasing any one of the interests will end up being inefficient
and wasteful.  Under the thumb of unions most government
enterprises lean way too far toward pleasing the unions.  How
much this bias pleases the individual employees is far from
clear.

     Union control over government enterprises must be rolled
back.  How to do this without going too far is unclear.  The
simple answer is to end collective bargaining for government
employees.  That seems to be going too far in the other
direction.  We should at least try less drastic measures first.

     In an environment of liberty negotiations and contracts
are voluntary.  No one is forced to participate.  Negotiations take
place between individuals and groups that believe a mutually
advantageous relationship may be possible.  When they can't
reach agreement, they go their separate ways.

     Labor negotiations should be the same.  No forced
negotiations.  The employee's remedy is the same as anyone
else's remedy.  If he doesn't like the terms offered by the
employer, he can move on.  This is the relationship nearly 90
percent of employees have with their employers.  So, don't even
bother claiming it won't work.

aldmccallum@gmail.com
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Copyright 2013
Albert D. McCallum
18440 29-1/2 Mile Road
Springport, Michigan 49284

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