For most of the past decade the policy debate over improving U.S. public education has centered on teacher quality. In this debate, teachers and their unions have often been seen as the problem, not part of the solution. Further, current discourse often assumes that conflicting interests between teacher unions and administration is inevitable. What is missing in the discussion, however, is a systems perspective on the problem of public school reform that looks at the way schools are organized, and the way decisions are made. Most public schools today continue to follow an organizational design better suited for 20th century mass production than educating students in the 21st century. This paper offers an alternate path in this debate--a counterstory that looks at schools as systems. It focuses on examples of collaboration among stakeholders through the creation of labor-management partnerships among teachers' unions, school administrators, and school boards. These partnerships improve and restructure public schools from the inside to enhance planning, decision-making, problem solving, and the ways teachers interact and schools are organized. The paper also offers recommendations for local unions and districts seeking to engage in collaborative approaches to school reform and improvement.