In this article the author assesses whether a fundamental transformation is underway in public sector (state and local government) labor relations in the United States by revisiting the arguments made by the author and Kochan and McKersie (1986) regarding the transformation of labor relations in the private sector. The author argues that the economic pressures that led to a transformation of private sector labor relations starting in the 1980s have not played a comparable role in recent developments in the public sector because of the political nature of labor relations in that sector. Other insights are drawn from a comparison of recent developments with events that occurred during the mid-1970s, an earlier taxpayer revolt era. The author concludes that a fundamental transformation in public sector labor relations has not occurred, attributable to some degree to the limited decline in public employee union membership and the fact that a majority of the public has favorable attitudes toward public sector employees and union collective bargaining rights. Factors that might lead to such a transformation in the future are highlighted.