Public-sector trade union
Encyclopedia
A public-sector trade union (or public-sector labor union) is a trade union
which primarily represents the interests of employees within public sector
(government-owned, supported or regulated) organizations. Public sector unions have become some of the larger or more influential unions in certain areas of the world in recent times due to easier corporate opposition to private-sector unions.
Such unions are highly controversial among conservatives who advocate for the downsizing of the public sector and blame public sector unions for running up large state deficits.
in 1919, which was suppressed by Governor Calvin Coolidge, and the opposition of President Franklin D. Roosevelt to labor unions in the federal government, unionization remained uncommon among government employees. Roosevelt once described that:
The Wagner Act of 1935, and subsequent legislation, applied only to employees in the private sector, since the federal government could not interfere in state government. The major exception was the emergence starting in the 1920s of unions of public school teachers in the largest cities; they formed the American Federation of Teachers
(AFT). In suburbs and small cities, the National Education Association
(NEA) became active, but it insisted it was not a labor union but a professional organization.
Change came in the 1950s. In 1958 New York mayor Robert Wagner, Jr. issued an executive order, called "the little Wagner Act," giving city employees certain bargaining rights, and gave their unions with exclusive representation (that is, the unions alone were legally authorized to speak for all city workers, regardless of whether or some workers were members.) The first U.S. state to permit collective bargaining
by public employees was Wisconsin
, in 1959. Collective bargaining is now permitted in three fourths of U.S. states. By the 1960s and 1970s public-sector unions expanded rapidly to cover teachers, clerks, firemen, police, prison guards and others. In 1962, President John Kennedy issued Executive Order 10988, upgrading the status of unions of federal workers.
After 1960 public sector unions grew rapidly and secured good wages and high pensions for their members. While manufacturing and farming steadily declined, state- and local-government employment quadrupled from 4 million workers in 1950 to 12 million in 1976 and 16.6 million in 2009. Adding in the 3.7 million federal civilian employees, in 2010 8.4 million government workers were represented by unions, including 31% of federal workers, 35% of state workers and 46% of local workers. As Daniel Disalvo notes, "In today's public sector, good pay, generous benefits, and job security make possible a stable middle-class existence for nearly everyone from janitors to jailors."
In 2009 the U.S. membership of public sector unions surpassed membership of private sector unions for the first time, at 7.9m and 7.4m respectively.
In 2011 as states faced a growing fiscal crisis and the Republicans made major gains in the 2010 elections, public sector unions came under heavy attack especially in Wisconsin, as well as Indiana, New Jersey and Ohio from conservative Republican legislatures.
argued that government agencies resemble economic "black holes" where increased 'inputs' lead to declining 'outputs.'Economist Thomas DiLorenzo
has argued that:
Other complaints strongly criticize strike action
s by public sector unions as being particularly egregious actions because, in many polities, of the effective monopoly or oligopoly that the government possesses over the provisions of the disrupted services to the widest number of residents; a walkout strike by municipal-level public-sector waste management workers, for example, would leave residents of an entire municipality to deal with accumulations of disposed goods for the duration of the strike.
Trade union
A trade union, trades union or labor union is an organization of workers that have banded together to achieve common goals such as better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with...
which primarily represents the interests of employees within public sector
Public sector
The public sector, sometimes referred to as the state sector, is a part of the state that deals with either the production, delivery and allocation of goods and services by and for the government or its citizens, whether national, regional or local/municipal.Examples of public sector activity range...
(government-owned, supported or regulated) organizations. Public sector unions have become some of the larger or more influential unions in certain areas of the world in recent times due to easier corporate opposition to private-sector unions.
Such unions are highly controversial among conservatives who advocate for the downsizing of the public sector and blame public sector unions for running up large state deficits.
Europe
European governments typically engage in extensive consultations and long-term pacts with their public sector unions. Many public sector unions remain apart from the confederations created by private sector unions, although some are affiliated to wholly public sector confederations, such as the Matrix of Croatian Public Sector Trade Unions. By 2010 severe financial crises forces several governments to cut back on benefits and pay rates, leading to strong protests. most notably in Greece. For example there was a one-day strike in Greece protesting budget cuts required by the EU for its bailout of Greekfinances.United States
The first strikes by government employees took place in the 1830s, but the unions generally bypassed government employees because they were controlled mostly by the patronage system before the arrival of civil service. After the fiasco of the Boston Police StrikeBoston Police Strike
In the Boston Police Strike, the Boston police rank and file went out on strike on September 9, 1919 in order to achieve recognition for their trade union and improvements in wages and working conditions...
in 1919, which was suppressed by Governor Calvin Coolidge, and the opposition of President Franklin D. Roosevelt to labor unions in the federal government, unionization remained uncommon among government employees. Roosevelt once described that:
All Government employees should realize that the process of collective bargaining, as usually understood, cannot be transplanted into the public service. It has its distinct and insurmountable limitations when applied to public personnel management. The very nature and purposes of Government make it impossible for administrative officials to represent fully or to bind the employer in mutual discussions with Government employee organizations. The employer is the whole people, who speak by means of laws enacted by their representatives in Congress. Accordingly, administrative officials and employees alike are governed and guided, and in many instances restricted, by laws which establish policies, procedures, or rules in personnel matters. Particularly, I want to emphasize my conviction that militant tactics have no place in the functions of any organization of Government employees. Upon employees in the Federal service rests the obligation to serve the whole people, whose interests and welfare require orderliness and continuity in the conduct of Government activities. This obligation is paramount. Since their own services have to do with the functioning of the Government, a strike of public employees manifests nothing less than an intent on their part to prevent or obstruct the operations of Government until their demands are satisfied. Such action, looking toward the paralysis of Government by those who have sworn to support it, is unthinkable and intolerable.
The Wagner Act of 1935, and subsequent legislation, applied only to employees in the private sector, since the federal government could not interfere in state government. The major exception was the emergence starting in the 1920s of unions of public school teachers in the largest cities; they formed the American Federation of Teachers
American Federation of Teachers
The American Federation of Teachers is an American labor union founded in 1916 that represents teachers, paraprofessionals and school-related personnel; local, state and federal employees; higher education faculty and staff, and nurses and other healthcare professionals...
(AFT). In suburbs and small cities, the National Education Association
National Education Association
The National Education Association is the largest professional organization and largest labor union in the United States, representing public school teachers and other support personnel, faculty and staffers at colleges and universities, retired educators, and college students preparing to become...
(NEA) became active, but it insisted it was not a labor union but a professional organization.
Change came in the 1950s. In 1958 New York mayor Robert Wagner, Jr. issued an executive order, called "the little Wagner Act," giving city employees certain bargaining rights, and gave their unions with exclusive representation (that is, the unions alone were legally authorized to speak for all city workers, regardless of whether or some workers were members.) The first U.S. state to permit collective bargaining
Collective bargaining
Collective bargaining is a process of negotiations between employers and the representatives of a unit of employees aimed at reaching agreements that regulate working conditions...
by public employees was Wisconsin
Wisconsin
Wisconsin is a U.S. state located in the north-central United States and is part of the Midwest. It is bordered by Minnesota to the west, Iowa to the southwest, Illinois to the south, Lake Michigan to the east, Michigan to the northeast, and Lake Superior to the north. Wisconsin's capital is...
, in 1959. Collective bargaining is now permitted in three fourths of U.S. states. By the 1960s and 1970s public-sector unions expanded rapidly to cover teachers, clerks, firemen, police, prison guards and others. In 1962, President John Kennedy issued Executive Order 10988, upgrading the status of unions of federal workers.
After 1960 public sector unions grew rapidly and secured good wages and high pensions for their members. While manufacturing and farming steadily declined, state- and local-government employment quadrupled from 4 million workers in 1950 to 12 million in 1976 and 16.6 million in 2009. Adding in the 3.7 million federal civilian employees, in 2010 8.4 million government workers were represented by unions, including 31% of federal workers, 35% of state workers and 46% of local workers. As Daniel Disalvo notes, "In today's public sector, good pay, generous benefits, and job security make possible a stable middle-class existence for nearly everyone from janitors to jailors."
In 2009 the U.S. membership of public sector unions surpassed membership of private sector unions for the first time, at 7.9m and 7.4m respectively.
In 2011 as states faced a growing fiscal crisis and the Republicans made major gains in the 2010 elections, public sector unions came under heavy attack especially in Wisconsin, as well as Indiana, New Jersey and Ohio from conservative Republican legislatures.
Criticism
Public sector unions have come under fire for their substantial lobbying efforts, high pay and high benefits relative to private-sector employees. Conservatives, who have long opposed labor unions, have been particularly critical. Milton FriedmanMilton Friedman
Milton Friedman was an American economist, statistician, academic, and author who taught at the University of Chicago for more than three decades...
argued that government agencies resemble economic "black holes" where increased 'inputs' lead to declining 'outputs.'Economist Thomas DiLorenzo
Thomas DiLorenzo
Thomas James DiLorenzo is an American economics professor at Loyola University Maryland. He is an adherent of the Austrian School of Economics. He is a senior faculty member of the Ludwig von Mises Institute and an associated scholar of the Abbeville Institute...
has argued that:
The enormous power of government-employee unions effectively transfers the power to tax from voters to the unions. Because government-employee unions can so easily force elected officials to raise taxes to meet their "demands," it is they, not the voters, who control the rate of taxation within a political jurisdiction. They are the beneficiaries of a particular form of taxation without representation (not that taxation with representation is much better). This is why some states have laws prohibiting strikes by government-employee unions. (The unions often strike anyway.)
Politicians are caught in a political bind by government-employee unions: if they cave in to their wage demands and raise taxes to finance them, then they increase the chances of being kicked out of office themselves in the next election. The "solution" to this dilemma has been to offer government-employee unions moderate wage increases but spectacular pension promises. This allows politicians to pander to the unions but defer the costs to the future, long after the panderers are retired from politics.
Other complaints strongly criticize strike action
Strike action
Strike action, also called labour strike, on strike, greve , or simply strike, is a work stoppage caused by the mass refusal of employees to work. A strike usually takes place in response to employee grievances. Strikes became important during the industrial revolution, when mass labour became...
s by public sector unions as being particularly egregious actions because, in many polities, of the effective monopoly or oligopoly that the government possesses over the provisions of the disrupted services to the widest number of residents; a walkout strike by municipal-level public-sector waste management workers, for example, would leave residents of an entire municipality to deal with accumulations of disposed goods for the duration of the strike.