Great Britain Bans Federal Worker Collective Bargaining

I am pleased to report the end of collective bargaining at the national level. Unfortunately, I am talking about the UK, not the US, and also unfortunately, local wage bargaining will remain in place.

The Telegraph reports National pay rates will be scrapped in budget.

Millions of teachers, nurses, civil servants and other public sector workers are to lose their right to national pay rates, the Chancellor George Osborne will announce in next week’s Budget.

George Osborne will say that public sector employees in poorer parts of the country should have their pay frozen until it is brought into line with local private sector workers.

Mr Osborne originally intended to introduce local pay rates in April 2013, but has decided to bring the plans forward by a year in an attempt to boost growth.

The move is likely to be met with a furious response from unions, which are already threatening industrial action over cuts to pensions.

The Chancellor will publish figures that show that in some parts of England and Wales public sector workers earn almost a fifth more than those in equivalent jobs in the private sector.

The Treasury argues that the pay gap leaves private companies struggling to compete for the best staff against public sector organisations, whose workers also enjoy better pensions and job security.

The National Union of Teachers said it was calling a one-day strike in London on March 28 as the next step in its pensions campaign. Mr Osborne, however, is determined to push ahead with the reforms to pay and pensions. The Treasury wants to base the plans on a local-pay system introduced for staff in courts under the previous government.

This is a start, but if you are going to incur the wrath of labor unions, and Chancellor Osborne surely will, then you may as well go all out. The correct move is to end bargaining altogether. If unions don’t like it, too bad. If they can make more in the private sector, they can go for it.

Public unions bankrupted Greece, they will bankrupt Spain, they have the UK and the US on the verge of ruin, and they have bankrupted numerous US cities already.

Correct Policy Trifecta

  1. End public union collective bargaining completely
  2. End all prevailing wages laws including Davis Bacon
  3. Institute National Right-to-Work Laws

Unlike parimutuel horse-racing bets, any order will suffice.

About the author: Mike “Mish” Shedlock is a registered investment advisor representative for Sitka Pacific Capital Management. His top-rated global economics blog Mish’s Global Economic Trend Analysis offers insightful commentary every day of the week. He is also a contributing “professor” on Minyanville, a community site focused on economic and financial education. Every Thursday he does a podcast on HoweStreet and on an ad hoc basis he contributes to many other websites, including UnionWatch.

2 replies
  1. TheBeachBum says:

    Way to go GB!

    Originally unions were `trade unions’. They represented a largely powerless, voiceless army of blue-collar workers. That just isn’t true anymore. They have lost (or bankrupted) the private sector and morphed themselves into every aspect of the public sector, from janitor to judge. The majority of union members in America today are, college-educated and work for the government, where they receive an average of over $100K annually in pay and benefits — twice the average of workers in the private sector.

    These union driven public sector salaries and pension benefits are eating up so much of the overall tax-base that government’s chief purpose becomes to reward public employees. Meeting these unsustainable costs comes at the expense of the rest of the state. Parks are closing, classroom size is increasing and public services are in steep decline. The only public entity that isn’t suffering are the employees both current and retired.

  2. David H says:

    That is good news, unfortunately as time goes on and things become more severe the unions will resort to violence.

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published.