When public sector workers strike all money saved on wages during the strikes should be returned to tax-payers as a tax credit or end-of-year U.S.-style tax rebate.
The effects should be
– to reduce political pressure on the govt. to give in to public sector strikes
– to have a deterrent effect on would-be strikers themselves
– ease the hardship of the strikes on the members of the public affected
These 3 effects will help the govt introduce much needed public sector reform which in turn will help public sector finances.