4 Differences in Public Sector vs Private Sector Labor Relations

The factors that separate public sector vs private sector labor relations issues can be subtle but significant. Here are four of the biggest differences that can impact your approach to public and private labor organization relationships.

1. Employee Rights and Job Security

Private sector workers have federally protected labor rights, but job security issues can still disproportionately impact the private sector. Many states have at-will employment, which means that a worker in the private sector can be fired for any reason (or for no reason at all). As long as the termination is not blatantly discriminatory or tied to a protected class, it is possible for a private sector employer to fire or lay off any worker at any time, even if the reason is only because they want to.

Public sector workers can often experience a level of job security that is a step above that of private sector workers, but their rights are more closely dictated by their specific employers. A number of states have determined that public workers are able to join labor unions, allowing them to collectively work toward the negotiation of specific benefits. This can improve the quality of life for these workers, and help them collectively seek additional value in their careers.

2. Compensation and Negotiations Are Different

The way private vs public sector employees are compensated — and the way they negotiate that compensation — is fundamentally different because private sector employees frequently have a tenuous hold on the jobs for which they are hired. There can be a reluctance to "rock the boat" and risk being fired by asking for more. 

Making the most of a labor management system is vital to ensuring that companies can give their employees what they need and deserve when it comes to proper compensation and support.

Additionally, employees should be able to negotiate the terms of their compensation and working conditions to ensure protection and security. Having a labor union makes these negotiations easier, but there are still many employees in the private sector who do not have the bargaining or negotiation power they hope for. Public sector employees typically have more stable employment, giving them increased power to negotiate pay, benefits, working conditions, and much more.

3. Each Sector Has Unique Legal Considerations

The legal considerations for HR in public vs private sector companies are different, as the protections for employees vary. For example, employees in the public sector are protected by laws governing freedom of speech, while employees in the private sector do not have the same protections. On the other hand, a public employee has other unique legal considerations tied to their employment, such as their basic obligation of public service.

Even with the additional protection of union membership backing private workers and negotiating for their interests, there remain a number of areas where private sector employees are not covered or secure.

4. Workers and the Value of Unions

Understanding the differences between employee and labor relations in the private vs public sector is vital to focusing on the ways to help employees in both situations. Unions that are part of the private sector generally focus their efforts on wages and job security, while public sector unions are more interested in the working conditions of union members.

Additionally, who they bargain with is different. Private unions negotiate and bargain with employers, while public unions spend their time bargaining with local and state legislators. Both of those bargaining options can be extremely valuable but they are not the same in terms of how the bargaining is handled and the level of success that can be expected. Before a potential employee takes any job they should be aware of union representation and how it is handled in their case.

The Right Support Makes All the Difference

Getting the support you need matters. Contact us today at LaborSoft and let us help you with issues relating to HR in public vs private sector companies. With the right kind of help you can get all you need from trusted professionals, so you can keep moving forward and handling your company's needs efficiently. Whether you have a public or private sector company you need an HR partner who can give you the quality guidance needed to protect and defend your employees to the fullest.