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One more hurdle for liquor privatization

June 20, 2012
Williamsport Sun-Gazette

The union representing 3,500 workers of Pennsylvania's state-owned liquor stores has ratified a new labor agreement that runs through mid-2015. So what happens if the liquor store system is privatized before that?

Naturally, it depends on whom you talk to.

A union leader said the pact requires any private company that takes over all or any portion of the liquor and wine sales to hire displaced state-store employees and adhere to contract provisions regarding salaries, health insurance and pension benefits.

A spokesman for Gov. Tom Corbett, who supports closing the more than 600 state stores, argued private businesses cannot be forced to honor a contract covering state employees.

Frankly, a private business taking over liquor stores probably would tend to hire the state-store employees because of their experience and know-how in that particular line of work.

But businesses take over other businesses everyday and make changes to work provisions.

Whether that same principal is possible when there is a labor agreement in place may be another matter.

It smells like a court challenge, which should surprise absolutely no one.

Of course, lost in the legal wrangling will be the opportunity the state has to modernize its liquor store system, create a competitive free market, benefit consumers statewide and give an immediate boost to the state's budget from sales of liquor licenses.

In Pennsylvania, progress rarely comes without painstaking political hurdles.

 
 

 

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