Chapter 14
Labor Relations in the Public Sector
Public-sector labor law
• Civil Service Reform Act, Title VII
(Federal)
– Established Federal Labor Relations Authority
similar to NLRB in private sector
– General Counsel prosecutes ulp’s
– Federal Service Impasse Panel
Public-sector labor law (cont.)
• Postal Reorganization Act for postal
workers; LMRA applies, but binding
arbitration in lieu of right to strike
• State laws vary; in Texas, police and
fireman cannot strike; arbitration required
• Prohibition to strike not always effective,
such as with school teachers
Public-sector bargaining
• Sovereignty doctrine: Decision-making by
elected officials but management by civil
servants; results in multilateral bargaining
• Employees may strongly influence policy
because they vote; pay taxes
• end run bargaining-appeal to legislative
body in addition to negotiations
• sunshine laws-citizens observe/participate
Public sector unions
• American Federation of State, County, and
Municipal Employees has doubled
membership as private unions decline
• American Federation of Government
Employees
– only 23% are dues paying members; rest are
free riders.
– union security clauses are prohibited
Impasse Resolution
• Fact-finding has been more successful than
in private section; public opinion can result
in pressure to reach a settlement
• Arbitration to offset not granting strikes
– Chilling effect - parties believe arbitrator will
split difference and bargaining ends
– Narcotic effect - Habit forming; less risky
– Final offer - arbitrator chooses one position
without modification; union or management
Public vs. Private sectors
• Services in public sector are provided at
little or no cost beyond taxes; no market
control
• Monopolistic; lack of substitute goods
• Few productivity measures….but this is
changing
• Budget more critical
• sovereignty doctrine-no one head honcho
Other issues
• Right-to-strike - Services are essential to
general welfare of citizens so no strikes
• Referendum-resolve issues by taxpayer vote