Background
Wisconsin Governor Scott Walker is seeking passage of a law that would change the collective bargaining rights of most public employees. A major provision would limit collective bargaining only to wages, not work rules. The proposal exempts police and fire personnel.
The law would also require employees to contribute 5.8% of their salaries towards their pensions and pay 12.6% of the cost of their health insurance. Employees currently contribute nothing towards their pensions, and only 6% of the cost of insurance.
Our article, “Labor Day 2010: Let’s Not Labor Under Misconceptions,” offers a libertarian perspective on public and private unions.
One: It Is Encouraging to See Change
The public is now beginning to recognize the economic harm caused by allowing public employee unions to collectively bargain. This recognition may foreshadow increasing awareness of the need to radically downsize government, and it suggests that political change in the U.S. as a whole is possible.
Two: The Proposal Is a Modest Step Concerning Public Unions
All states should simply end the right of public unions to collectively bargain.
Three: Budget Need Is a Sufficient But Not Necessary Reason to Effect Change
Wisconsin, like most states, desperately needs to cut costs. Even absent this factor, though, the inherent unfairness of having collective bargaining with public employee unions mandates that it end.
Four: Real Change Requires Eliminating or Privatizing Many Government Services
Here are examples:
The government’s virtual monopoly on primary and secondary education has resulted in high costs and mediocrity, and has deprived parents and students of the benefits of a free market in education. Government should get out of education, including its funding.
Gov. Walker’s exemption of police and firefighters from changes in collective bargaining is symptomatic of the idea that these groups require special indulgence because they provide “essential services.” This view, however, invites government to take advantage of taxpayers in providing these services. Creative states and municipalities will contract with private companies for at least some security services, cutting costs and providing an incentive for good service. They will also either end government firefighting services, allowing the market to provide these, or contract with private firms.
Decent states will end drug prohibition, cutting the need for many police and correction personnel. The drug war is not “essential”—it is a wasteful and destructive menace.
Five: The Federal Government Should End Its Own Collective Bargaining
Federal employees have limited collective bargaining rights. Even these rights, though, are problematic, and should be terminated. A case in point: the Transportation Security Administration (TSA) is extending partial collective bargaining rights to airport screeners. This can only make the notoriously poor screening operation even worse.
Six: Private Labor Unions Should Also Lose Their Privileges
Many commentators have expressed approval of Gov. Walker’s proposal, while supporting the right of private unions to collectively bargain. This right comes from federal law, and unfairly coerces private employers to accommodate unions. Unions act as cartels, and are economically destructive. The support for government protection of private unions betrays a lack of respect for the limited proper role of government.
While states can enact “right to work” laws that protect employees from having to join unions, the real change should come through federal deregulation of labor.
Conclusion
Change often comes incrementally. Gov. Walker’s initiative to begin reining in public employees is a good first step that should be followed by more actions by all states and the federal government.
