Edmund Henschel & Russell Knetzger

In its Sept. 17 editorial about Gov. Scott Walker’s second term agenda, the Journal Sentinel Editorial Board said, “Act 10 was a mistake” (“Gov. Scott Walker’s second term? Same as the first,” Our View). Act 10 virtually ended collective bargaining for many, but not all, state and local public employees.

It was not a mistake and should be followed up with Act 10.2 and Act 10.3. One would address the expensive early retirement feature included in the Wisconsin pension plan for all state and local public employees, and the other would bring in police and fire personnel, left out in Act 10. Police and fire together amount to about 60% of most local budgets, leaving only 40% covered by Act 10.

Wisconsin was the first state in the Union to allow public employees to bargain collectively, and, by the 1970s, unionization was showing its worst feature. That feature was, and will always remain, that unions cannot resist the temptation to try to control both sides of the bargaining table. They do this by being politically active in electing union-sympathetic public officials and in de-electing taxpayer sympathizers. The state teachers union was the first to consistently apply this power both in local and state elections and was very effective at both levels.

Wisconsin, having first created public collective bargaining, rightfully should be the first state to remove it. Indiana was slightly earlier, but the Indiana public at referendum put it back in place. That action, and the current race for Wisconsin governor, shows just how much unions are fighting to regain this power.

Early public employee unions recognized that public employee strikes did not sit well with the public. In exchange for removing the right to strike, unions were given arbitration, a power that likely gained more for unions than striking. The problem with arbitration is it becomes an averaging of the surrounding lowest and highest wages.

As the wealthier tax bases raise their wages and benefits, over time the lower tax base communities rise to the previous average of the higher base. If they both can rise faster than inflation, which they have done by a ratio of 2.5-3 to 1, in only a few successive contract periods the lower tax base pay equals the former high base levels.

Much more on Wisconsin Act 10, here.