Many public agencies are monopolies

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Reference no: EM133575118

Question

Many public agencies are monopolies and there are no such market controls on them. Because public organizations generally provide vital services, like police, fire, sewer, etc., the public cannot go elsewhere for comparison shopping for these services. Thus, labor unions can make inflated demands on the public employer and win them by threatening a strike, slowdown, or work-to-rule behavior. There are also other alternatives, such as the "blue flu," when police officers call in sick; red-rash, a sickness that seems to afflict whole units of firefighters at once; or "chalk-dust" fever, a ploy used by teachers. However, there are those who argue that certain "market restrictions" on outrageous demands by public sector unions do exist, such as public coercion to prevent the raising of taxes, media outcries, privatization, and political pressures. Even if the employees go on strike, or some form of work stoppage, revenues continue to come in to the public sector. Furthermore, unions are well aware that if employees engage in work stoppages, they may risk being found redundant, and have their jobs eliminated.

Reference no: EM133575118

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