This paper proposes an analytical perspective that illuminates the major variables in the establishment of labor relations policy in education. It describes the relationships that exist between collective bargaining, the pursuit of the public interest, and the protection of client interests in the processes of schooling. The anslysis is based on field data from two sources: transcripts taken from public hearings held by the National Committee for Citizens in Education and transcripts from 22 videotaped interviews generated under the sponsorship of the Associates Program of the Institute for Educational Leadership. Three levels in the analysis of labor relations policy for schools are considered. First, the social policy level in which it is necessary to determine what is meant by a "legitimate" interest (whose interests are legitimate with regard to what aspects of the collective bargaining processes or outcomes). Second, the power resource level at which it is necessary to determine what power resources are available to each party with a legitimate interest and how potent these power resources are for affecting the collective bargaining results. Third, the statute language level at which it is necessary to determine what impact various statute provisions will have on altering the power resources of the various interested parties. (Author/IRT)