Government Employee Unions should be outlawed, plain and simple. Even FDR thought they were a terrible idea (http://www.presidency.ucsb.edu/ws/index.php?pid=15445). You're basically using collective bargaining against the taxpayer at various levels of government, i.e. the the higher up you go, the less taxpayers are affected (city ~500k vs federal ~150m taxpayers) and the less they care about bargaining. Besides, when a bureaucrat or politician is the taxpayer's representative at the bargaining table, and unions use their clout to get those people appointed/elected, there's an inherent conflict of interest.

If government employees believe they're getting the shaft, they can form PACs to get their champion into power. That puts the issue in front of the voter/taxpayer more clearly.

Here's a great free market perspective from Prof. Charles W. Baird: http://www.econlib.org/library/Columns/y2009/Bairdlabor.html