private sector workers

Federal Employees Continue to Prosper

The Bureau of Economic Analysis has released its annual data on compensation levels by industry. The data show that the pay advantage enjoyed by federal civilian workers over private-sector workers continues to expand. This state of affairs is a thumb in the eye of the private sector, which continues to struggle with high unemployment. Many private sector employees have been forced to take pay and benefit cuts while continuing to fund generous federal employee compensation with their taxes.

Unions Fading in Private Sector But Not in Government

At the end of last week, the Labor Department reported that the share of private-sector workers who belong to labor unions fell to its lowest level in more than a century.

In 2009, the “union density” in the private sector fell to 7.2 percent, the lowest it has been since 1900. The recession caused the number of private-sector union members to fall by 10 percent last year, with the heaviest losses in manufacturing and construction.

Postal Service Announces $8.5 Billion Loss

The U.S. Postal service has announced a net loss of $8.5 billion for fiscal 2010. Since 2006, the USPS has lost $20 billion, and the organization is close to maxing out its $15 billion line of credit with the U.S. Treasury. Although the USPS has achieved some cost savings, they haven’t been enough to overcome a large drop in revenue due to the recession and the greater use of electronic alternatives by the public.

Public Favors Federal Wage Freeze

A wage freeze for federal workers is the vote winner in the House Republican YouCut poll this week. YouCut is designed to gather citizen input online regarding which federal programs to cut.

So far, the GOP’s proposed cuts aren’t very big, and I’ve suggested some larger ones. But a good sign is that the largest cut of those offered has won the most votes two weeks in a row, suggesting that the public is eager for spending reforms.

John Berry: Angry about Federal Pay

The head of the federal Office of Personnel Management, John Berry, has become unhinged by a few recent critiques of federal worker pay. Berry is an Obama appointee who apparently views his role as being a one-sided lobbyist for worker interests, rather than a public servant balancing the interests of taxpayers and federal agencies.

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