Wednesday, July 31, 2013

Government Unions Break Cities

An article in today's Wall Street Journal illustrates how government union leaders halted any reforms that may have prevented Detroit's bankruptcy:
A major expense for Detroit is the cost of lawsuits filed against the city for various alleged injuries on municipal property. At the transportation department, there were hundreds of claims arising from bus accidents alone. How many of those claims were fraudulent? How many were settled (with the cost of settlement and legal fees posted against DDOT's budget) at unnecessarily high cost? ...
In the DDOT we tried to hire our own lawyers to fight these claims. But we were blocked by city charter provisions prohibiting any city department from hiring outside counsel without the approval of the Detroit City Council. When we inquired with the mayor's office we were told that the union representing the law department—in Detroit, even the lawyers are unionized—would block any such approval.
http://www.commonwealthfoundation.org/policyblog/blog_detail.asp?id=6063 

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