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This article raises the issue of 'industrial relations' in the public sector, ie, how employer-employee relations are conceptualized in liberal democratic political theory. The historical & theoretical legacy of this conceptual apparatus can help explain why the welfare workers (employed in publicly financed health care, social service, education, elderly care, & day care for children) are hardly mentioned in the liberal democratic scheme. The liberal democratic state traditionally focuses on political subjects as if they all were citizens/cohabitants (in the civil society), when in fact roughly 20% of the Swedish electorate at the same time are citizens/co-workers (in the local welfare state). The issue of rights & duties in direct & indirect relations between the local state & the citizenry is therefore heavily biased in favor of the citizen-as-cohabitant/consumer. If both these roles of the citizenry were adequately handled in political theory, this would possibly cast a new light on New Public Management as well as the current Swedish focus on freedom of choice ('exit rights') for welfare consumers. It is argued that there is nothing inherent in liberal democratic political theory that could block the application of the idea of a neutral & benevolent state to the citizen-as-coworker. A coherent application of the Marshallian scheme of civil, political, & social rights therefore means the inclusion of social rights to citizens-as-co-workers. 55 References. Adapted from the source document.