Union imposed price fixing does not work

Two tier pay systems seldom work.  They come in two parts.  First, the original group holds on to benefits.  Second, the new group pays for them.  Third: You get mostly old contracts and very few new contracts, then the oldsters retire, en masse, when this is not sustainable..  This is the Dallas pension problem, it is really the California energy price fixing problem under Gray Davis.  Price fixing jams the graph.

CalWatch: In 2011, Mayor Antonio Villaraigosa (pictured) won a hard-fought deal with the Los Angeles police and firefighters unions that targeted “pension spiking” — late-career maneuvering that allowed individuals to push up their final pay and thus their annual pensions. It also reduced the minimum pension available after 20 years of service.

All employee unions also made concessions reducing retirement benefits for newly hired workers that year. And after the 2011 contracts, all new hires had to share in the costs of health care benefits. Taxpayers had previously covered the whole tab.