When Unions Won’t Budge

Cities across the country are struggling; some are finding the piggy bank empty. Cities like Scranton, PA are feeling the effects of the tough economy, poor real estate market and a general exodus from the area. City pension outgo is three times more than the city revenues. A loan to the city has not materialized because banks requested the city make changes which have not happened. The mayor of Scranton says he only has $5,000 left in the bank. Not enough to pay salaries. His solution: pay everyone, including himself, minimum wage.

Of course, city workers are up in arms. While unions are demanding their workers receive contracted salaries they are not willing to amend salaries or retirement plans. Do union bosses really prefer to see mass layoffs than contract adjustments?

This is what happens when unions won’t budge.