The public sector currently employs around 40 percent of all union members in the United States. Pressures for cost-effective and quality government services have placed new demands on the labor-management relationship. A fluctuating set of expectations about the appropriate responsibilities of government and a shifting political culture are severely testing the ability of the public sector to meet demands for increased accountability and expanded services.

Especially in an age of knowledge workers, the traditional division between labor and management regarding leadership and work...