Collective Bargaining concerns public employee unions and state and local govern
ID: 1154427 • Letter: C
Question
Collective Bargaining concerns public employee unions and state and local governments. These agreements outline wages & pensions and have been the bedrock of public employment for almost 100 years. Now, many state and local governments can no longer afford the payments. Some have declared bankruptcy. How can we afford to pay pensions for former police and fire officials who get pensions for life that guarantee 80% of their former pay? BUT, how would you like to be an old retiree who has been told his pension is now 50% of what he was promised? Your city or town can’t keep raising taxes up and up, but it can’t pay the bills? What would you do if you were a city councilor or selectman?
Explanation / Answer
It is recommended that the present pensions paid to the old retirees should not be reduced as this will bring bad name to the government. rather the government should pay the present recommened pensions even by incurring increased expenditure or by raising taxes. However, it is strongly recommended that in future the pension levels should be downgraded to less the present percentage of income. This should be clearly stated in the wage agreements beforehand. Thus, I would recommend that the government should pay the dues currently but in future reduce the pension rates to avoid sustained increase in budget deficit.