Monday, February 21, 2011

Hard Bargaining

As this is written, Madison, Wisconsin, is convulsed in the biggest  protests since the Dow riots of September,  1967. (1)  The issue is Governor Scott Walker's  proposal that  public employee unions  (except for police and firefighters) be denied the right to bargain over anything but wages.  Although Walker has linked the issue to his demand that state workers pay more for their retirement and health  insurance, it is the bargaining question that has brought angry mobs to the Capitol, including a minority who support the Governor.  But is he right?

Wisconsin law permits collective bargaining by employees of state and local governments, and requires  binding arbitration  in cases of  deadlock.  In today's economy,  public sector unions are the only ones that are still growing;   the percentage of unionized  business employees  peaked in 1956,   and has been declining ever since.  Some argue that public officials who won their offices with labor support face a conflict-of-interest  in bargaining with the unions that helped elect them.

  There can be no doubt that unionization of public employees has led to higher labor costs for state and local governments.  But if you accept the right of workers  to organize and bargain collectively  (which  has been enshrined in federal labor law since  the 1930's), it is hard to justify excluding government employees.   Walker's  plan, which would  allow  unlimited  bargaining  by  police and firefighters  (the two unions in Milwaukee that endorsed him, coincidentally)  is especially unfair  to other groups of  public employees, such as teachers, librarians, lawyers and so on. 

Even if  public employees have better pay, benefits and job security than similar workers in  the private sector,  the arbitration rule  (which settles disputes in accordance with prevailing wages)  prevents drastic disparities.
Also, in those fields where governments and private entities compete for the best employees  (such as doctors, nurses,  accountants and such)  the advantages of public employment will attract the most capable applicants to public service jobs, so market forces serve the public interest.

Labor support is a significant factor  in many elections, including the one I am in right now.  Public employee unions, like  the Realtors,  florists, bankers,  undertakers, and military contractors  are self-interest groups, all of whom seek  favorable  actions by government officials.   Right-wing critics  single out the unions, but  all these groups make campaign contributions to  candidates (usually incumbents) who  are sympathetic to their causes.   Conscientious public officials should  not  favor groups that have helped them get elected, but as long as contributions are properly reported and spent  only for  political  purposes,  there is no  practical  way to prevent them from affecting the judgment of elected officials.  (2)  Voters who don't like unions are free to vote against politicians who have accepted their support.

The political atmosphere inside the Capitol is just as ugly as that  in the streets.   Democratic state senators are holed-up in Illinois to prevent a vote on Walker's bill, in a state version of  the filibuster.  There is talk of  recalling senators for their stands on this issue.  If we ever needed cooler heads to prevail,  we need them now.
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(1) The issue then was recruiting on the UW campus by  Dow Chemical Co., which made the napalm used in the Vietnam War.

(2) It is illegal, however, for  an official to promise to vote or take any other  action in exchange for a contribution, which is known as "quid pro quo", Latin for  "this for that."  It is a hard claim to prove, and very few politicians are ever prosecuted for it.

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