Explain the concern that public sector workers have too much bargaining power. Is this concern legitimate?

Question

What will be an ideal response?

Answer 1

It has been argued that public sector employees are too powerful, with almost unlimited bargaining power. This argument stems from the fact that, for many services, the public sector is the sole provider. Consumers (or constituents) do not have the option of shopping around for better price and quality as they would in a private market. Hence it is argued, public sector workers do not need to be sensitive to consumer preferences and needs. Further, public sector workers may be better able to manipulate or convince consumers that their services are necessary and that their best interests are at heart. However, there is little evidence that public sector workers have unfettered power over consumers. The public sector is subject to the same constraints as the private sector with regard to labor markets, displacement due to technology, and the potential for private sector competition (e.g., outsourcing lunch services in public schools). Further, the public does not have unlimited financial resources and is sensitive to price increases in the form of taxes. These factors work to dampen public sector workers' bargaining power.