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The Public Sector and Collective Bargaining by Doug Edelman

02/27/2011

From Doug Edelman at TownHall:

In the Private Sector, the Company exists to make a profit for its stakeholders. Management bargains with Labor, representing the interests of those stakeholders and Labor bargains on behalf of the worker. They arrive at an agreement which provides the needed labor at a sustainable cost which permits the profits which allow the Company to continue to operate and to continue to employ the workers. While there is some latitude for bargaining, both sides recognize that there is a balance that must be maintained to keep both labor and stakeholders happy, and that an imbalance toward EITHER side will destabilize the ability for the Company to continue earning profits and employing labor.

Unfortunately, this balance does not exist in the Public Sector, as NO ONE at the bargaining table represents the true stakeholder… the taxpayer! … The guy who foots the bill for both Labor and Management in this enterprise has NO SEAT at the table! Collective bargaining in the public sector is a huge conflict of interest, an incestuous relationship – ripe for corruption, and completely disregards the people the Government exists to serve… the taxpayer.

When a child is told by his mommy that he can’t have a desired toy because Mommy can’t afford it, he’ll often throw a tantrum. This is what we are seeing in Wisconsin today. But when the tantrum doesn’t work and mother and son leave the store without the toy, what happens? After a period of sulking, the boy will eventually accept the inevitable and get on about the business of living his life.

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