Unfortunately those benefits packages, which you think private sector should unionize and demand more of, are for the most part completely unsustainable and are driving more and more local and state governments broke. Granted the private sector businesses would go to jail for using the same fuzzy math that the .gov does but that is a whole other issue.
What is truly sad about this entire debate is that a fuckton of people who were promised pensions and benefits long after the quit working for local/state governments and who are indeed counting on those pensions will not receive them. It isn't really a matter of if but when in more places than you care to believe. They won't be able to raise taxes enough or cut enough spending in other areas to make up the difference (I am sure they will try though but it will only buy them a short period of time) and at the end of the day the people counting on and expecting their pension are going to get hosed.
The union negotiators as well as the .gov knew that the fuzzy math would eventually crumble but it will be on someone elses watch so why should they care. They got the benefits from cutting the deal (support from the union for reelection, donations, reelected as union boss, etc..) and I would wager most are retired by now.