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9 J.L. & Educ. 223 (1980)
A Union Perspective

handle is hein.journals/jle9 and id is 233 raw text is: How to Cope with Collective Bargaining in Times of Fiscal Crisis: A Union Perspective WILLIAM T. SCOTT,* JAMES R. SANDNER,** AND A. MICHAEL WEBER*** Introduction Much attention has been focused on the effects of the fiscal crisis on municipal government-its ability or lack thereof to function-with particular microscopic analysis on unions and their collective bargaining agreements, the resulting costs and long range impact of these contracts. The fiscal crisis is a product of numerous factors, including a weaker international economic mar- ket, inflation, recession, the energy crisis, the loss of employment in the central cities, federal fiscal policy that enables the federal government to withhold more funds from municipalities than it returns through services or programs,' and a national philosophy that encourages, supports and condones accumu- lated national debt of over $25 trillion.2 Municipalities were in the forefront as borrowers, with banks and other financial institutions willing participants in the trading and holding of municipal securities. For the purpose of this paper, the fiscal crisis is the result of constraints placed on municipal budgets due to many, if not all, of the above factors. With loose fiscal policy and reliance on substantial borrowing, most major older cities throughout the country were not dissimilar to New York. While financial retrenchment and the concomittant effects in these cities were not experienced, as when New York faced its financial crisis, theirs was soon to follow with similar results; high interest rates on municipal securities with some cities unable to enter the securities market; cutbacks in services; lay-off of employees; and others. And for the purposes of analyzing the fiscal crisis on collective bargaining, its full effect for New York started to be felt in 1972. In the 1960's when the economy was expanding, all prospered; in the 1970's, with the advent of a shrinking economy, all systems and levels of local government were constrained to make changes never before contemplated. * Assistant to the President of the United Federation of Teachers, NYSUT, AFT, AFL-CIO. ** General Counsel, New York State United Teachers. *** Associate Counsel, New York State United Teachers. 'Seymour Melman, The Federal Rip-off of New York's Money, Public Employee Press, March 12, 1976. 2 Business Week, October 12, 1974.

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