The Cato Institute’s Chris Edwards has issued a new report (pdf link here) urging states to follow North Carolina’s lead in banning collective bargaining in the public sector.
Besides raising compensation costs, unions reduce government efficiency in other ways. Unions tend to protect poorly performing workers, they often push for larger staffing levels than required, and they discourage the use of volunteers in government activities. Further, they tend to resist the introduction of new technologies and they create a more rule-laden workplace. In the private sector, businesses can mitigate such union-caused inefficiencies. In response to union demands for higher pay, for example, businesses can substitute capital for labor. Unfortunately, public-sector managers have little incentive or flexibility to make such changes.
4 p.m. update: If you believe North Carolina should maintain its current policy against public-sector collective bargaining, Americans for Prosperity North Carolina wants to hear from you. Follow the link to learn about “Save Right-to-Work in North Carolina.”
