This story is interesting. In NYC, there is a school bus strike. According to that article, bus drivers make $14/hr as a starting salary and $29/hr with lots of experience.
$29/hr is a pretty high salary for a bus driver! It’s the usual example of unions collecting economic rent.
There’s one interesting legal loophole. The NYC government hires private contractors to drive the buses, even though the buses transport children to public schools. The bus drivers work for the contractor and not the government. That allows politicians to claim “It’s not our fault! Blame the private corporation that hires the drivers!”
The NYC government is going to place the bus driver contracts up for bid again. Some new corporation will get the contract, and hire newer/cheaper workers. The old corporation has the union contract and experienced/expensive workers. Therefore, the new corporation will win the bid, and the old corporation is forced to close and fire workers.
The drivers are striking to protest the fact that they will be fired when the contracts are put up for bid again.
The underlying problem is that a bus driver is not a $29/hr job. The unions priced themselves out of the market, by demanding an unreasonably high salary.
Suppose the government puts the contracts out for bid with a 3 year contract. Shouldn’t the union contract also be for 3 years, with the same expiration date? The employer should have insisted that the union contract expire at the same time as the government contract. Also, having the contract end in the middle of the school year gives the union extra negotiating leverage.
That is an interesting loophole for firing experienced and overpaid unionized workers. Form a new corporation, and the old corporation folds and fires its workers. That’s what Hostess did when it declared bankruptcy and fired all its employees. The NYC government is exploiting that legal loophole, by giving out bus driver contracts.
Unions receive a massive State subsidy, in the form of labor law. When a strike ends, the employer is forced to hire the workers back. The reduces the risk when workers strike. I can’t believe some pro-State trolls were arguing with me on this point, when I wrote about the LA port strike. When workers strike, the employer should be allowed to fire all of them and hire permanent replacements.