| The theory of "entrepreneurial government" has become a popular topic in major developed country of late. It is also a basic resource of government reinvention. A key element between government reinvention and public sector labor relations is the collective bargaining system. In Taiwan, as interpreted by the Judicial Yuan, Art. 4 of the Trade Union Act violates the Constitution, and thus limitations on labor rights in the public sector should be reviewed and modified. Moreover, the draft of the Public Servant Standards Law proposed by the Examination Yuan also would allow public servants to request the government to arrange for collective bargaining. Generally speaking, fundamental labor rights are composed of the right to unionize, the right of collective bargaining, and the right to strike. These rights are recognized in the U.S. legal system. However, in Taiwan, the fundamental labor rights of the public sector have been totally denied so far. This study first describes the legal basis of labor rights, focusing on the main theme of U.S. public sector collective bargaining. It then reviews several limitations made by the Judiciary department and the role of government. Furthermore, the Clinton adminstration's initiative to reform labor relations in the public sector is consistent with the government reinvention. The last section of the article summarizes views that might be considered as references for further developments in Taiwan.