Jim in CT
03-11-2011, 08:33 AM
I'm trying to grasp how anyone can honestly say that public union compensation is not out of control.
I'm a numbers guy. Let's look at 2 Wisconsin folks, both with salaries of $60k a year ($5k a month). Person A works in the public union, B works in the private sector.
Health insurance: Both A and B have families of 4, and let's say they each get the same health insurance plan through work, and let's say the total cost of each plan is $1,000 a month. The average guy working in the private scetor pays 30% of the cost of his insurance, so B sees a monthly deduction of $300 from his paycheck. According to the WI union, their members currently pay 6% of the cost of health insurance, so A only pays $60 a month.
Result: the union guy makes out $240 a month better. That's $240 more a month the taxpayers have to fork over, for every union employee.
Retirement Benefits: B works in the private scetor, so he has a typical 401(k). He contributes 6% of his salary to maximize the company match, so that's another monthly deduction of $300. Person A is in the union, where they contribute a whopping 0.2% to their pension, so he only pays $10 a month. Yes, $10 dollars a month, for a guaranteed pension.
Result: The union guy beats the private sector guy for another $290 a month. Making it worse, the pension is worth much more than a 4001(k), so the taxpayers REALLY take it on the chin here.
In total, the union guy pays $530 a month less for his benefits than his next door neighbor who works in the real world. And the union guy gets a much, much better retirement benefit.
Private scetor companies simply could not survive with benefits like that...no customer would be willing to absorb that cost. Public unions don't have that burden (of making customers voluntarily choose to buy their product), they simply confiscate the money via taxes.
So, the obvious question is this. Why should union employees be entitled to these insane benefits, when it forces a burden on the taxpayers that no one would voluntarily pay for in the private scetor?
I don't hate union employees. I just don't feel they are entitled to benefits that dwarf what exists everywhere else.
I'm a numbers guy. Let's look at 2 Wisconsin folks, both with salaries of $60k a year ($5k a month). Person A works in the public union, B works in the private sector.
Health insurance: Both A and B have families of 4, and let's say they each get the same health insurance plan through work, and let's say the total cost of each plan is $1,000 a month. The average guy working in the private scetor pays 30% of the cost of his insurance, so B sees a monthly deduction of $300 from his paycheck. According to the WI union, their members currently pay 6% of the cost of health insurance, so A only pays $60 a month.
Result: the union guy makes out $240 a month better. That's $240 more a month the taxpayers have to fork over, for every union employee.
Retirement Benefits: B works in the private scetor, so he has a typical 401(k). He contributes 6% of his salary to maximize the company match, so that's another monthly deduction of $300. Person A is in the union, where they contribute a whopping 0.2% to their pension, so he only pays $10 a month. Yes, $10 dollars a month, for a guaranteed pension.
Result: The union guy beats the private sector guy for another $290 a month. Making it worse, the pension is worth much more than a 4001(k), so the taxpayers REALLY take it on the chin here.
In total, the union guy pays $530 a month less for his benefits than his next door neighbor who works in the real world. And the union guy gets a much, much better retirement benefit.
Private scetor companies simply could not survive with benefits like that...no customer would be willing to absorb that cost. Public unions don't have that burden (of making customers voluntarily choose to buy their product), they simply confiscate the money via taxes.
So, the obvious question is this. Why should union employees be entitled to these insane benefits, when it forces a burden on the taxpayers that no one would voluntarily pay for in the private scetor?
I don't hate union employees. I just don't feel they are entitled to benefits that dwarf what exists everywhere else.