In some instances, unions that are making concessions are trying to ward off what they see as a much bigger threat—the specter of a switch from a defined benefit plan to a defined contribution plan, which is similar to a 401(k) in the private sector.
That worry was behind some recent union concessions in Minnesota, said Eliot Seide, executive director of AFSCME in St. Paul. Mr. Seide said his board agreed to a reduction in cost-of-living adjustments for current retirees “reluctantly,” so that “we don’t kill the goose that lays that golden egg.”
We wouldn’t want to do that. And incidentally, if you are a net contributor to a state government, you’re the goose.
Honk if you're a net contributor to state government.