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Contract Could Derail Liquor Store Privatization

The state stores’ 3,500 union employees have a new contract.

A new contract for union employees in liquor stores across the state could stall or even kill current efforts to remove liquor and wine sales from the hands of the state of Pennsylvania.

The new contract for 3,500 employees runs through June 2015, according to Philly.com, and the union says one provision requires any private company that would buy the state stores to hire and pay union employees the same salary until the end of the contract.  

A spokesman for Gov. Tom Corbett, who campaigned on privatizing the state stores, told Businessweek that private businesses cannot be made to honor contracts covering state employees.

What do you think? Should private businesses have to honor a contract they didn’t make? Should liquor stores be privatized? Tell us in the comments.

Joe June 07, 2012 at 02:43 PM
I am a conservatrive Republican, but even I believe there must be protection for the current employees if the State Stores are privatized. If you buy one of these stores, honoring the existing contract is a cost of doing business. The idea that private business does not have to honor the contract may be legal, but it is not moral!!!
pam davis June 08, 2012 at 12:55 AM
There are many people without jobs. These union employees should be subject to the same challenges everyone else faces, competition and doing a great job so that the company wants to hire you and keep you. Mediocre performance means no job. Thats what America is all about! Pam
Margo June 08, 2012 at 04:51 PM
This archaic state store system should be privatized. Since the 90's corporations have been buying up other companies and laying off thousands of people, whether they were good at their job or not. I agree with Pam and all these union employees should be subject to the same consequences.
Steve June 14, 2012 at 03:08 PM
I have not purchased anything at a PA state store in about 9 or 10 years because I can't stand the current system. This article supports my argument. The fact that unions can derail a multi-billion sale because of their precious union wages is sickening. Unions need to go. Who is more important here, the union workers or the rest of PA state taxpayers?

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