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? “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 billion Denver Northwest Parkway: 99 years Indiana Toll Road: $447,000

Why Are They Outsourcing? 1% = 1/ million $10 million 257 x YOU 181 (2009)

Why Are They Outsourcing? $6,000,000,000,000

Different Different Name… Same Game  Contracting Out  Outsourcing  Alternative Service Delivery  Contingents - Temporaries  Volunteers  Others?

PRIVATIZATION TRENDS in PRIVATIZATION NOTHING NEW…  P3s – Public-Private Partnerships  Selling Public Assets  Water, lotteries, roads  Privatization of nearly every service provided by the public and for the public  Social Services, Prisons, IT, Clerical, Custodial, Food Service, Medical Care, and Sanitation

We Are All on the Track Individual Job Loss – Union Membership Loss – Weakens Political Clout Harder to Bargain Encourages Other Employers A Good Fight Sends an Important Message

What’s 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: Threats: Where do they come from? Federal Legislation and Regulations State Legislation and Regulations Local Government Service Delivery Decisions Private Sector Subcontracting

2013 Privatization Bills CA OR WA ID NV AZ UT MT WY CO NM TX OK KS NE SD ND MN IA MO AR LA MS AL TN KY IL WI MI IN FL GA SC NC OH WV VA PA NY ME AK HI MD DE NJ CT RI MA NH VT DC Bill(s) Introduced Bill(s) Passed Bill (s) Defeated Non-Legislative Proposal(s) Introduced

Warning Signs at the Worksite 1.Financial Shortfalls 2.Service Problems - Complaints 3.Private Contractor Marketing 4.Consultant Studies – Reports on Operations 5.Outdated Technology and Equipment 6.Cut Backs in Maintenance 7.Unfilled Positions 8.New Services Without New Positions

Local Attacks: It Doesn’t Just “Happen” Contractors are Aggressive Marketers Push for “Smaller Government” Tough Times = – “Core Mission” – Personnel Costs – Asset Sales/Leases – Quick Money Avoiding Responsibility

Be Proactive: Know and Shape the Rules Are 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 Hearings – Votes to Proceed or Approve – Bidder’s Conference – Labor - Management Meetings

Stop it Before it Happens! Keep the Union Strong, Educated and Alert Fight for High Quality Public Services Support Decision Makers that Support the Union Develop and Maintain a Strong Network of Allies Know Your Contract and the Law Take the Privatization Workshop at AFSCME 41 st International Convention

Be Proactive: Limit the Threats Contract Language – Legislation – Policy No Contracting (all or particular service) Contracting Under Specific Limited Conditions Legislative Authorization Required – Public Hearing Advance Notice Joint Labor-Management Alternative Labor Only Alternative Time and technical assistance

HERE THEY COME… WHAT NOW?

Develop and Execute a Plan Identify Goal Develop the Steps – Blueprint to Achieve Goal Identify Leader to Manage and Drive the Plan Assign Specific Responsibilities for Actions Maintain Regular Communication Hold People Accountable for Commitments Be Flexible and Make Modifications As Conditions Change

Understand the Threat What 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 Users Suppliers Justice and Religious Organizations Media: reporters, editorial boards, columnists, bloggers Other Elected Officials Constituents

Coalition/Network Benefits Share Experiences and Successful Tactics Increase Amount of Technical Expertise –Review Legislation and Rules, Bidding Materials –Communication Techniques Increase Resources –“Boots on the Ground” –Access to Additional Communities of Interest Puts a Different Face (non-union) on Message

Group Exercise: Finding Partners

Take 5 minutes and identify at least 3 possible coalition partners Share your list with others at the table Explain what they will bring to the fight Table collectively picks five partners Report out to us how these partners will help defeat the privatization

Follow-up Exercise Be 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.

RESOURCES In The Public Interest A Resource Center on privatization and with the goal of ensuring democratic control of public functions. FoodandWaterWatch.org: Collection of materials, surveys, articles on the privatization of water AFSCME Research and Collective Bargaining Department -Tools on Bidding -Sample contract language -Privatization Toolkit and other resources