The Week in Public Finance: Will Weaker Unions Mean More Money for States?

The Supreme Court dealt a blow to public-sector unions this week. Whether it’ll save governments labor costs is debatable.

The U.S. Supreme Court dealt a potentially crippling blow this week to public-sector labor unions when it eliminated the requirement for non-union employees to pay “agency fees” to contribute to the cost of collective bargaining and related activities.

The decision is expected to cause a drop in union membership, which has fallen in nearly every state over the past decade, and a subsequent decline in unions’ revenue and power. A big question for governments is whether a weakening of labor unions will translate to lower labor costs in the 22 states that have not already adopted right-to-work laws, which let workers opt out of union fees.

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GOVERNING.COM

BY LIZ FARMER | JUNE 29, 2018



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