THE THREAT OF PUBLIC UNIONS, THE FUTURE OF THE PRIVATE SECTOR

From the desk of Stephen Cabot: While the private sector has lost 8-million jobs since 2008, the public sector has added 590,000 jobs during that same period. In addition, federal employees, on average, receive twice the salary and benefits that comparable private sector employees receive.

Public sector unions and congress are the keys that unlocked this Pandora’s box of economic irrationality. Imagine a circle comprising public sector unions, public sector employees, and Democratic members of congress. Each benefits the other. Democratic representatives vote to increase the wages and benefits of public sector employees, and their unions provide the necessary funds for re-election campaigns. Once re-elected, those representatives vote for higher wages and increased benefits for the union members who contributed to their election victories. And so it goes, on and on.

The result, of course, is ever higher deficits, spiraling into the stratosphere of economic irrationality.

And the disaster is not just confined to the federal deficit. The disease has infected state and municipal budgets across the country as well. According to recent estimates, state and city governments have inflated employee benefit liabilities in excess of $3-trillon!

Now with the NLRB firmly in the hands of pro-union ideologues, an agenda is coming into focus of an effort to increase the wages and benefits of private sector employees to match those of government employees. And the NLRB will attempt to do so by making private sector unions, such as the AFL-CIO and SEIU, as powerful as their public sector counterparts. It isn’t enough that public sector unions have egregiously contributed to the possible bankruptcy of governments, their private sector counterparts now want to inject that same virus into the body of Corporate America.

expert labor relations advice