Public sector collective bargaining brings its own special problems. Funds for compensation are specifically limited; the taxpayers may not choose to increase taxes, and government allocations are set a year in advance in many cases. In public education, a large portion of general government allocations for education are dedicated to pensions (in Michigan, about 27% of public school funding goes to pension). As an HR manager for a school, what would be your collective bargaining strategy for compensation with the teacher’s union, given that you are likely to have a maximum increase in your state allocation of 2%, and given your knowledge that teacher strikes are illegal?