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Monday, March 7, 2011

Collective bargaining

The stalemate in in WI is an interesting example of the problem with government budgets. Walker's proposal would remove most collective bargaining rights for public employees, except over wage increases no greater than inflation. Police and fire departments would be the only exemptions. The legislation would also require state workers to start paying more for their pension and health care benefits starting in April, which amounts to an 8 percent pay cut on average.The unions have agreed to the pay concessions as long as they can retain their bargaining rights.

Now, why would a union give in on pension and health care, but dig their heals in on collective bargaining? The answer is simple. With collective bargaining, they can regain what they have already given up. If they lose collective bargaining, they also lose any hope of getting back to the status quo. Which is why it is very important that they do lose collective bargaining. Otherwise, the state will be back with the same problem down the road.

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