In: Operations Management
8. What are the most important differences between public- and private-sector collective bargaining?
The most important differences between public and private-sector collective bargaining :
1. Scope :
Public sector unions have very limited scope of bargaining interms of collective bargaining as against to more wide scope possible for private-sector unions. For instance, federal company employees are prohibited from bargaining for compensation or pay increase.
2. The right to strike :
The most noticeable and crucial difference is that public sector unions are prohibited by law to initiate any kind of strike. While, in private sector, this right is available to unions. It has been due to the belief that work in Government sectors is too significant to be let stopped or disrupted.
3. Economic context :
The market forces that affect the private-sector organizations doesn't have the same impact on public-sector as in latter , some services(such as public health ) are easily provided than in the more competitive environment of private-sector.