Posts tagged unfunded pensions
Faster Labor Contracts Act would silence workers’ voices and empower bureaucrats
May 28, 2026 // While forced arbitration for union contracts would be new in the private sector, there is a corollary in the public sector called “interest arbitration” that some states most frequently apply to police and firefighter labor disputes. It’s not entirely analogous because a government that imposes forced arbitration is also the employer and thus part of the contract negotiations. Moreover, governments aren’t subject to the same bottom line as private sector companies because, unlike businesses, states generally can’t go bankrupt. Nevertheless, interest arbitration contracts have burdened state and local governments, arguably contributing to rising property tax rates in New Jersey, unfunded pensions in Chicago, and even municipal bankruptcy in Detroit.