Question

From your perspective which criticisms of the public sector are warranted? Are private companies more or less prone to criticism? Why or why not?

Answer 1

Negotiations in the public sectors are more challenging than the private sector due to the following reasons:

• Government sector have stringent laws for public-employee relationships and negotiation. It increases the difficulty of bargaining between employers and workers.

• Workers of government sectors are prohibited to strike for their wags and pay. They can strike or staffing and promotion discrepancies. It increases the dissatisfaction in workers. Hence, increases the complexity of negotiation process.

• Public sector involves higher bureaucracy. It leads to delay in the negotiation process. Therefore, it also increases the difficulty of negotiation process.

Due to the above reasons, union representation in public sector is growing at a faster rate. Contrary to this, union representations in private sector are decreasing due to relatively simple and fast negotiation procedures.