Public And Private Sector Labor Relations Essay

Public And Private Sector Labor Relations Essay

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In the case study I am asked the major differences between public and private sector labor relations. Throughout my research I will use the text along with outside sources to help in finding the significant differences between the two. Furthermore as outlined in the text of (Holley, Jennings, & Wolters, 2012) have indicated some of the major differences between public and private sector including the market economy such as the relationship between the budget and the bargaining process, employee rights and obligations, and collective bargaining structures and decision making processes. Furthermore, we must consider the differences within dispute resolution between private and public sector labor relations.
As stated in (State Budget Solutions, 2011) one key distinction between the two unions is that private sector unions must respect their employer 's bottom line, whereas government unions do not have that same obligation. Private sector union leaders bargain for more benefits while at the same time recognizing that excesses will force the company to lay off employees or go bankrupt. Therefore, private sector unions bargain face-to-face with those who pay the bills. In addition, private sector union members on strike lose their wages. Therefore, both private sector management and owners have an incentive to resist unreasonable union demands, particularly in regard to pension and retiree health care. If private sector managers make unwise concessions impairing the long-term profitability of their company, it is reflected immediately in the value of the company. In contrast, government unions are not confined by an employer 's bottom line. For public employees, the bottom line is the bottom of the taxpayers ' pockets. Therefore, ...


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...tion of the previous arbitrators decisions the arbitrator would hold significant weight in his decision for the reason of consistency in his evaluation due to the importance of past practice in disputes. The arbitrator will decide in favor of Mr. Lee as a result of the Postal Service lacking evidence of an adverse impact on the employer or employees (Holley, Jennings, & Wolters, 2012). Furthermore, Mr. Lee’s actions have not adversely affected the performance and efficiency of himself and the Postal Service.
In conclusion private and public sector labor relations share similarities and differences as explained throughout the case study. Ultimately, public sector employees are stronger when it comes to collective bargaining and disputes due to the government not really having the option to shut down or relocate in addition to employees having property rights to jobs.

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