Will they agree to pay cuts? No way. Will they agree to lower retirement benefits? Nope. What is their incentive?
A public employee union has all the power in the world. They already have salaries well above market rates, and it's easy to see why. The state can't fire them all, the politicians who organize that will never be reelected. Those politicians would be accused of being unsympathetic or of even being inhumane. When a union has no possibility of being laid off, then they have no reason to compromise. They will lose nothing if they strike outside of a few weeks or months pay. There is no risk of losing a job. When the company cannot compromise with the laborer, then the company would start losing money because labor would be ridiculously overpriced. It's a failed business model that the state so openly embraces. It's no wonder California is failing.
http://www.latimes.com/news/local/la-me-lausd24-2009nov24,0,1277280.story
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