That's No Way to Run a Railroad

Public-sector unions are designed to negotiate the best deal for their members. On the Long Island Rail Road, average salaries are far above local median household income, and work rules can multiply pay for certain duties. Many workers earn large amounts of overtime in addition to base pay, and those earnings increase pension benefits. Pensions can be claimed early after long service. While these arrangements benefit union members, taxpayers and commuters fund the compensation. Even when political leaders push back, strikes can be settled without changing overtime, work rules, or pension levels. Collective bargaining laws exist in many states, but research indicates the outcomes often do not advance the common good.

"Salaries at the Long Island Rail Road-a commuter-train system that connects suburban residents to New York City-now average $121,646, which is 50 percent more than the median household income in New York City ($80,483). Work rules entitle engineers to double or even triple pay when they drive different types of trains on the same day or when they deliver a train to the maintenance yard after driving passengers. Last year, more than 300 LIRR workers each earned $100,000 in overtime-in addition to their base pay. Those extra wages in turn inflate their pensions, which they can take at the age of 55 after 30 years of service."

"All of this is as good for union members as it is unimaginable for most American workers. But taxpayers and commuters are the ones who pay for those generous compensation packages, and it's reasonable to wonder whether they are getting a fair deal. To her credit, Governor Kathy Hochul pushed back on the LIRR unions. But she quickly settled the strike on still-to-be-disclosed terms that will keep in place massive overtime payments, expensive work rules, and bloated pensions."

"That's business as usual in blue states and blue cities, where public-sector unions wield fearsome political power. None of this is inevitable. Strong unions persist because roughly 30 states have passed laws requiring collective bargaining with public workers. If this process advanced the common good, all would be well. But the available research suggests that it doesn't. To the contrary, unions routinely insist on pay packages a"

Read at The Atlantic