Wisconsin solution

Around the time the hullabaloo in Wisconsin started, I watched "Waiting for Superman", which put a lot of the blame of the education system on the teachers union. I think there is plenty of blame to go around and not generally a fan of the education system because it pretty much teaches kids that seeking knowledge is an unpleasant experience. I'm using my kids as lab rats for strategies on how to get around this. I'm having limited success. We'll get into that some other time.
My approach to any given issue is that I look at the merits of each sides arguments (and sorting out the intellectual dishonesty aka bullshit) and trying to incorporate as many of them as possible. In this case Unions are right to want to protect collective bargaining and Walker is right that collective bargaining forces the state to overpay under performing employees. 
One solution I have come up with would be a tiered collective bargaining. The Unions and the state should come up with, say three, levels of collective bargaining. Each tier should be negotiated separately so that the state is not treating under performing employees as well a high performing employee.  Deciding which employees sit at what tier should be decided by the state but with some sort of control built in to keep it honest. A possible control could be that at least a third of employees must considered high performing and at least two thirds be considered above low performing.
The next mechanism needed is a system for firing bad teachers that does not create financial incentives for firing good teachers. Not sure how that one would work...yet.