A modest proposal
So here’s my idea. Public-sector workers should definitely abandon the whole union thing. Instead, they should establish public-sector HR outsourcing companies that handle payroll, benefits administration, etc. for the states. They can charge the states a little bit more than they’re paying now, but structure the contracts so that so that obligations for the out-years get amortized over a longer period-thereby alleviating the immediate pressure on state treasuries.
Also, the restructured payments would be optioned out as contract renewals, rather than under-funded entitlements-so they would be less detrimental to the state’s bond ratings.
Then, these new HR outsourcing organizations should skim 15% off the top and use whatever is left over for salaries, pension investments, etc.
Finally, these public-sector HR outsourcers should go public. This is key. HR outsourcing is very hot right now. The influx of capital will help fund both near-term cash-flow shortfalls and expansion into other markets.
So instead of being vilified for extorting money from the state, these new HR outsourcers can be hailed by Wall Street and its allies for innovation and profitability. Sure, teachers will get a little less money and the states won’t really save anything. But there will be profit for bankers. And that’s all that counts, isn’t it?
Oh, one more thing. Instead of backing Democratic candidates as they did historically as unions, the new HR outsourcers should contribute to Republican campaigns.
I know. Genius.