Confronting the Wicked Witch and Exposing the Wizard

Abstract

Four cases are analyzed to explore the strategic behavior of public unions when they confront privatization. Four sets of hypotheses emerge from the case evidence. First, the private sector demonstrates no inherent advantage in the delivery of public goods, particularly when economic and social costs are taken into account. Second, economically feasible privatization is largely a function of weaker institutional protections for workers in the private labor market. Third, unions demonstrate flexibility toward privatization when members are protected, and under certain contextual conditions collective bargaining can become a forum for enhancing public services. Fourth, unions' political influence is largely consistent with positive normative interest‐group behavior.