WSJ.com - Athens in Mad Town

WSJ.com - Opinion: Athens in Mad Town

 

For Americans who don't think the welfare state riots of France or Greece can happen here, we recommend a look at the union and Democratic Party spectacle now unfolding in Wisconsin. Over the past few days, thousands have swarmed the state capital and airwaves to intimidate lawmakers and disrupt Governor Scott Walker's plan to level the playing field between taxpayers and government unions.

Mr. Walker's very modest proposal would take away the ability of most government employees to collectively bargain for benefits. The bill would also require union members to contribute 5.8% of salary toward their pensions and chip in 12.6% of the cost of their health insurance premiums.

If those numbers don't sound outrageous, you probably work in the private economy. The comparable nationwide employee health-care contribution is 20% for private industry. The average employee contribution from take-home pay for retirement was 7.5% in 2009.

Unions are treating these reforms as Armageddon because they've owned the Wisconsin legislature for years and the changes would reduce their dominance.

Public unions have a monopoly position that gives them undue bargaining power. Their campaign cash—collected via mandatory dues—also helps to elect the politicians who are then supposed to represent taxpayers in negotiations with those same unions. The unions sit, in effect, on both sides of the bargaining table.