stopping outsourcing in it’s tracks

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Stopping Outsourcing In It’s Tracks. Jane Carter, Labor Economist III GOALS. Outsourcing 101 Proactive fights Best Practices and Executing a Plan Coalition Building. Same Game… Different Name…. Why Are They Outsourcing?. - PowerPoint PPT Presentation


  • Stopping Outsourcing In Its TracksJane Carter, Labor Economist

  • GOALSOutsourcing 101Proactive fightsBest Practices and Executing a PlanCoalition Building

  • Same Game Different Name

  • Why Are They Outsourcing?Desperate government is our best customer. There will be a lot of desperate governments out there. Infrastructure: $100 billion.Private waste: $50 billion Chicago Parking LLC: $11.6 billionDenver Northwest Parkway: 99 yearsIndiana Toll Road: $447,000

  • Why Are They Outsourcing?1% = 1/38 3.6 million$10 million257 x YOU181 (2009)

  • Why Are They Outsourcing?


  • Different Name Same GameContracting OutOutsourcingAlternative Service DeliveryContingents - TemporariesVolunteersOthers?

  • TRENDS in PRIVATIZATIONNOTHING NEWP3s Public-Private PartnershipsSelling Public AssetsWater, lotteries, roadsPrivatization of nearly every service provided by the public and for the publicSocial Services, Prisons, IT, Clerical, Custodial, Food Service, Medical Care, and Sanitation

  • We Are All on the TrackIndividual Job LossUnion Membership LossWeakens Political CloutHarder to BargainEncourages Other EmployersA Good Fight Sends an Important Message

  • Whats At Stake?Loss of public input and oversight of public services

    Poor service quality for taxpayers and residents

    Loss of taxpayer control of public services and assets to Wall Street Bankers and CEOs.

  • Threats: Where do they come from?Federal Legislation and RegulationsState Legislation and RegulationsLocal Government Service Delivery DecisionsPrivate Sector Subcontracting


    Bill(s) Introduced

    Bill(s) Passed

    Bill (s) DefeatedNon-Legislative Proposal(s) Introduced

  • Warning Signs at the WorksiteFinancial ShortfallsService Problems - ComplaintsPrivate Contractor MarketingConsultant Studies Reports on OperationsOutdated Technology and EquipmentCut Backs in MaintenanceUnfilled PositionsNew Services Without New Positions

  • Local Attacks:It Doesnt Just Happen

    Contractors are Aggressive MarketersPush for Smaller GovernmentTough Times = Core MissionPersonnel Costs Asset Sales/Leases Quick MoneyAvoiding Responsibility

  • Be Proactive:Know and Shape the RulesAre there negotiated restrictions on contracting out?Does the DM have the legal authority to act?Are they following the required procedures?Right of notification What opportunities exist for input - influence?Public HearingsVotes to Proceed or ApproveBidders ConferenceLabor - Management Meetings

  • Stop it Before it Happens!Keep the Union Strong, Educated and AlertFight for High Quality Public ServicesSupport Decision Makers that Support the UnionDevelop and Maintain a Strong Network of AlliesKnow Your Contract and the Law

    Take the Privatization Workshop at AFSCME 41st International Convention

  • Be Proactive: Limit the ThreatsContract Language Legislation PolicyNo Contracting (all or particular service)Contracting Under Specific Limited ConditionsLegislative Authorization Required Public HearingAdvance NoticeJoint Labor-Management AlternativeLabor Only AlternativeTime and technical assistance


  • Develop and Execute a PlanIdentify GoalDevelop the Steps Blueprint to Achieve GoalIdentify Leader to Manage and Drive the PlanAssign Specific Responsibilities for ActionsMaintain Regular CommunicationHold People Accountable for CommitmentsBe Flexible and Make Modifications As Conditions Change

  • Understand the ThreatWhat is being proposed?

    Who is proposing it?

    Why are they doing it?

    Who will decide?

    How can we influence the decision makers?

  • Evaluate Coalition Partners & Allies ID Coalition Partners and Allies Service UsersSuppliersJustice and Religious OrganizationsMedia: reporters, editorial boards, columnists, bloggersOther Elected OfficialsConstituents

  • Coalition/Network BenefitsShare Experiences and Successful Tactics Increase Amount of Technical ExpertiseReview Legislation and Rules, Bidding MaterialsCommunication TechniquesIncrease ResourcesBoots on the GroundAccess to Additional Communities of InterestPuts a Different Face (non-union) on Message

  • Group Exercise: Finding Partners

  • Group Exercise: Finding PartnersTake 5 minutes and identify at least 3 possible coalition partnersShare your list with others at the tableExplain what they will bring to the fightTable collectively picks five partnersReport out to us how these partners will help defeat the privatization

  • Follow-up ExerciseBe proactive by working with your union to reach out to at least three potential coalition partners that you can work with to fight your own battles back home.

  • RESOURCESIn The Public Interest A Resource Center on privatization and with the goal of ensuring democratic control of public functions. Collection of materials, surveys, articles on the privatization of water

    AFSCME Research and Collective Bargaining DepartmentTools on BiddingSample contract languagePrivatization Toolkit and other resources

    *We have a packed day!Privatization 101 different name, same game What exactly are we up against?STAGES: We will review where each local is in the privatization range What are the threats you are currently facing? Where are we under attack, and where can we fight back?Planning the Attack we will Map out our lines of defense ROADBLOCKS and Proactive Approaches ways to stop privatization of community resources and public service before it even starts Review the state law other ordinances and contract languageDeveloping a Plan and Identify Best Practices - for Developing and Executing a Plan (Its here, now what?!) Tools and Resources - Online Network and Other Resources

    **Privatization has been around since the 1400s, literally. In todays world, it is coming full circle. Privatization spiked in the 70s and again in the mid 2000s. We see it again, with a vengance, as private entities lure politicians with a way to pass the buck and shift the costs of providing public services off the books. The game is the same, as are the names. *Last year eight Americans -- the four Waltons of Walmart fame, the two Koch brothers, Bill Gates, and Warren Buffett -- made more money than 3.6 million American minimum-wage workers combined. The median pay for CEOs at America's large corporations rose to $10 million[6] per year, while a typical chief executive now makes about 257 times the average worker's salary, up sharply from 181 times in 2009. Overall, 1% of Americans own more than a third of the country's wealth.****The services provided to the community arent just a service its a big bucks business. Even small municipal budgets offer a big incentive to private contractors. It is money waiting to be hadWater systemsPrisonsHealth and Social servicesInfrastructure, like highways and bridgesRoad maintenanceSchools: from bus drivers to teachersParks And much moreIn fact, most of the mid-west, and most major cities have not privatized their solid waste collection. WM projects that is about $8 billion still to be had.

    *Any one want to add their story? ***When you start to see these things at the worksite be warned! We often hear that if empty positions were actually filled, the jobs we do could actually get done. But as you can see, this can be a move to privatize. Be wary of these actions or on-goings at your worksite or in your department. Financial ShortfallsService ProblemsPrivate Contractor PresentationsStudies Reports on OperationsOutdated Technology and EquipmentCut backs in MaintenanceUnfilled PositionsNew Services Without New PositionsPublic Employee Bashing

    *Any one want to add their story? *Although the fight seems to be a David vs. Goliath struggle, we have had some wins. We have been able to achieve legislative protections, language for worker protections in contracts. Weve also been able to fight back thru worker actions (Tulsa). On top of it all, weve been able to use these issues to propel a larger community into action FoodandWaterWatch, even public outrage. The San Diego Unified School District has saved $1 million a year since bringing bus services in-house in 2010. (worker Action!) Only two years into a contract with IBM to provide benefit eligibility service, Indiana cancelled its $1.34 billion contract with IBM in 2009. For two years, families failed to receive benefits for which they qualified, including food stamps, health coverage, and cash assistance, due to the company's poor provision of these services. In 2010, Gary, Indiana cancelled its 10 year contract with United Water after inspectors found that the company had violated discharge limits 84 times between 2005 to 2007; had at least 25 pieces of broken equipment; filed inadequate monitoring reports; and failed to meet mandated deadlines. By cancelling the contract and bringing water service back in-house, the city expects costs to decrease from $16 million to $8 million a year.

    **Cost Savings (Differential) AnalysisIn-house versus full cost of contractingWage and benefit standardsSocial costs public interestMandatory cost savings3rd Party determination - arbitrationFinal Legislative Approval Public HearingMinimize the Loss: Employment Security, 1st Right of RefusalRights and Process for Contracting In*********Also, as always, you can contact the R&CB department for assistance and help.*