Published
December 18, 2024
In a recent decision, a Wisconsin judge overturned Act 10, a state law that had restricted public employees’ bargaining rights since its enactment in 2011. The ruling has sparked a heated debate across the state, with many arguing that it could have detrimental effects on Wisconsin’s economic stability and public sector efficiency.
Passed under then-Governor Scott Walker, Act 10 aimed to address the state’s budget deficit by limiting the bargaining rights of most public employees largely by requiring public workers to contribute more to their pensions and health insurance. Proponents at the time argued that was necessary to control state spending and reduce the burden on taxpayers. More importantly, Act 10 survived a series of court battles when the Wisconsin Supreme Court upheld the law in 2014.
Still, a fresh challenge was filed in 2023 by seven unions, and the judge’s decision agreed that the law violated the Wisconsin constitution. He opined that the law created an unfair distinction between “general” public employees and “public safety” employees, allowing the latter to retain their collective bargaining rights while stripping them from the former. This, he argued, was an irrational and unconstitutional division, despite the state Supreme Court’s holding otherwise.
One of the primary reasons Act 10 was implemented was to help balance the state budget. By reducing the bargaining power of public sector unions, the state was able to control labor costs more effectively. Overturning Act 10 could lead to increased labor costs, putting additional strain on the state budget and potentially leading to higher taxes or cuts in public services.
Act 10 also allowed more flexibility in managing public employees, including the ability to reward high performers and address underperformance without the constraints of union contracts. Reinstating them could make it more difficult for state and local governments to manage their workforce efficiently and lead to decreased productivity and service quality.
The ruling sets a concerning precedent for future legislation aimed at fiscal responsibility. If laws designed to control spending and improve efficiency can be overturned so easily, it may become increasingly difficult for lawmakers to implement reforms. That would hinder efforts to address budgetary challenges and improve government operations.
While the restoration of collective bargaining rights for public employees may be seen as a victory for labor unions, it poses significant challenges for Wisconsin’s economic stability and public sector efficiency, and it disrupts the balance achieved over the past decade. Thankfully, proponents of Act 10 in the legislature quickly appealed the decision, and one hopes they succeed in reversing this judge’s overreach.
About the authors
Sean P. Redmond
Sean P. Redmond is Vice President, Labor Policy at the U.S. Chamber of Commerce.
