I’m willing to concede that unions may have their place in the private sector when they work to balance the power of management. All too often, though, even private-sector unions can work to force companies into agreements that are detrimental to both sides in the long term.
Unions do not belong in the public sector at all, though, and here’s why: While private-sector companies have to consider the impact of union agreements on profitability, public-sector entities do not have to worry about making a profit and can agree to anything the union demands. If union demands result in increased costs, all that a public-sector body has to do is to raise taxes; private-sector companies, on the other hand, cannot necessarily just raise prices.
Saturday, May 1, 2010
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