When asked what the unions hoped to accomplish during the massive wave of strikes in 1970s Britain, a British union leader humorously said ,"more pay for less work".
Brian Cowen is learning this reality this week as both the teachers and nurses unions won't even discuss the possibility of pay cuts and the other public sector unions are opposed to cuts. It looks as if some unions may grudgingly concede 1 or 2% in pay cuts which would be only a small fraction of cuts needed to balance the budget over time. So the government will now have to unilaterally impose pay cuts or the equivalent in actuarially determined increases in pension contributions,a more palatable form of pay cuts.
If in response to unilateral government moves to cut pay the unions engage in industrial action that proves very disruptive,the government will have no choice but to sack large numbers of public sector workers instead of cutting pay.In that event, even front line workers like teachers and nurses would not be exempt from the sack. Sometimes a massive dose of unemployment is the only way to make unionised workers face economic reality.



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