AFSCME Privatization Update

Source: Reason Foundation, April 10, 2008

The Pennsylvania Turnpike is one of the country's least cost-efficient toll roads, spending a whopping 62.4 percent of its toll revenues on operating and maintenance costs. Of 35 toll roads studied, only the Massachusetts and West Virginia turnpikes spend a higher percentage of their toll revenues on operating costs, according to a new report by the Reason Foundation, a free market think tank that has advised the last four presidential administration on transportation issues.

By comparison, the New York State Thruway has 51 percent more lane miles and handles 83 percent more vehicle miles traveled than the Pennsylvania Turnpike, but its annual costs are $39 million lower.

Over the last seven years the Pennsylvania Turnpike's operating costs have more than doubled from $181 million in fiscal 2000 to $370 million in fiscal 2007. During that same time, the U.S. inflation rate was 23.4 percent, so the Turnpike's costs grew at 4.5 times the rate of inflation.

Posted by Info Center at 3:35 PM in Transportation | Permalink

Source: By Suzanne Barlyn, Time, Thursday, Apr. 03, 2008

Mark Alexander, a Dallas attorney, says he's ethically obligated to do what's best for his clients, "and that includes saving them money." So when one of them asks him to research a securities-fraud topic, for example, or breach of contract, he doesn't even think about applying his $395 hourly rate. Instead, he calls Atlas Legal Research, an outsourcing company based in Irving, Texas, that uses lawyers in India to provide the service for $60 per hr. "When a client pays me a $25,000 retainer and I can save them money, I will do so," says Alexander. Handing off the work to a $225-per-hr. junior associate is not an option. "They don't even know where to stand in the courtroom," he says.

Related article from New York Law Journal at Law.com: Legal Outsourcing to India Is Growing, but Still Confronts Fundamental Issues

Posted by Info Center at 3:31 PM in Offshore | Permalink

Source: Novella Bottini, Carlo Cattaneo University-LIUC, Italy; Christoph Ernst, Economic and Labour Market Analysis Department, International Labour Office; Malte Luebker, Policy Integration and Statistics Department, International Labour Office; International Labour Organization.

This paper reviews some of the issues brought forward in the debate on offshoring. It defines the term clearly and draws the border between offshoring and related terms. The study also identifies the forces that drive offshoring, the tasks that are most susceptible to relocation, and the most likely destinations. A more technical section presents the tools and the available data to measure offshoring and its consequences. Special focus will be given to the impact of offshoring on employment and inequality, both in the countries that offshore and those that host offshored activities.

Posted by Info Center at 3:27 PM in Offshore | Permalink

Source: Crookston Times (MN), Friday, April 4, 2008 1:16 PM

...... The proposed 10-year contract with Sodexo meets the University's high standards for quality, choice, service and responsibility and provides the best value and best financial benefit for the University and students, faculty and staff.

Key terms include employee stability and financial investments and commitments. Members of AFSCME and Teamster unions remain University of Minnesota employees at their current salary and benefit level and report to Sodexo management. Current on-site management will also continue employment and be employed by Sodexo.

Posted by Info Center at 3:46 PM in Food Services | Higher Education | Permalink
Tags: Minnesota

Source: by Greg Barr, Houston Business Journal, Monday, April 7, 2008 - 1:18 PM CDT

The unions seeking to organize Aramark Corp. food service employees in Houston and other cities nationwide launched a Web site Monday offering fans a chance to beef about the quality of food at sports stadiums.

The site (www.AramarkStrikesOut.info) is sponsored by the Campaign for Quality Services, a joint project of the Service Employees International Union and Unite-Here.

Posted by Info Center at 3:44 PM in Food Services | Permalink

Source: By LESLIE MODICA, Foster's Daily Democrat (NH), Saturday, April 5, 2008

A decision to privatize school custodial work has prompted a formal labor complaint against the school district.

The American Federation of State, County and Municipal Employees Local 2932, Dover Custodial and Grounds, filed the complaint with the Public Employee Labor Relations Board on March 14, citing several complaints with the process surrounding its collective bargaining process and the district's intent to privatize custodial work.

Posted by Info Center at 3:32 PM in Custodial | Schools K-12 | Permalink
Tags: New Hampshire

Source: By ROBERT T. GARRETT, The Dallas Morning News (TX), Monday, April 7, 2008

Lawmakers are worried that a partly privatized system for determining who receives public assistance is still shaky and may not be salvageable. Paperwork for applicants has been lost. Needy Texans have received little help from state workers when they've complained of mistakes. And all too often, Texans who should qualify for state-paid health care and other benefits have been refused because of such errors.

...... The problems could also distract Texas officials as they separately seek to overhaul Medicaid, the nation's main health care program for the poor.

Posted by Info Center at 3:13 PM in Information Technology | Social Services | Permalink
Tags: Texas

Source: DAN WALTERS, Sacramento BeeScripps News (CA), April 4, 2008

A California employee union is complaining about an embryonic scheme in the state Board of Equalization to hire one or more private collection firms to track down those who owe taxes to the state.

The Service Employees International Union says the state's own tax collectors could do the job just as well, for far less cost, if they were equipped with up-to-date tracking tools.

...... Just a couple of months ago, for instance, LGBS was fired by the city of Chicago after it was revealed that it had bankrolled a vacation trip for the city official who oversaw its contract to collect unpaid parking fines, which had generated $33.6 million in commissions for the firm.

Posted by Info Center at 2:58 PM in Tax Collection | Permalink
Tags: California

Source: Service Employees International Union news release, Thu, Apr. 03, 2008

With a growing number of communities nationwide raising concerns about the business and workplace practices of food service giant Aramark, four current and former Aramark employees are launching a national tour today to learn more about the corporation's impact on America's communities. The workers -- janitors and food service workers -- will travel coast-to-coast to meet with parents, community leaders, and fellow Aramark workers in cities including Houston, Los Angeles, Chicago and New York.

For more information, visit FactsOnAramark.info

Posted by Info Center at 2:56 PM in Custodial | Food Services | Permalink

Source: By Chloe Gotsis, Tewksbury Advocate (MA), Wed Apr 02, 2008, 10:32 AM EDT

Tewksbury - As the national economy plunges further into recession, gas prices continue to hike, and the price of living continues to climb, local governments like Tewksbury that are already wrought with fees and cuts are exploring the notion of privatizing the public library.

The notion of privatizing public entities is becoming more common among local governments across the country, libraries have continued to remain traditionally public across the country.

Along with the smaller issue of privatizing public libraries, this argument introduces the question of public entities running other taxpayer and publicly run entities largely under profit-driven reasoning.

Posted by Info Center at 2:49 PM in Library | Permalink
Tags: Massachusetts

Source: BY FRAN SPIELMAN, Chicago Sun Times (IL), April 2, 2008

Six teams -- one including some of the same players who paid $1.82 billion to lease the Chicago Skyway -- will vie for the right to make Midway Airport the nation's first privately-run commercial airport.

....... Roughly $1.3 billion of the windfall will be used to pay off Midway Airport debt. Up to half of the net proceeds will be used to shore up under-funded city employee pension funds. The rest will be used to build libraries, parks, schools, museums, police and fire stations.

Posted by Info Center at 10:58 AM in Asset Sale/Lease | Transportation | Permalink
Tags: Illinois

Source: THE ENQUIRER (OH), April 2, 2008

Mason school officials plan to fight an administrative law judge's recent ruling regarding unfair labor charges filed against the district.

Two years ago, the district contracted for custodial services at the new Mason Early Childhood Center and at an addition to the intermediate school. Doing so is saving about $300,000 annually, said Mike Brannon, assistant superintendent for operations.

The district's chapter of the Ohio Association of Public School Employees filed unfair labor practice charges, alleging that the district refused to bargain with the union on the matter. The union represents groundskeepers and custodial, maintenance and HVAC workers.

Posted by Info Center at 10:56 AM in Custodial | Schools K-12 | Permalink
Tags: Ohio

Source: By Donna Borak, Associated Press, April 2, 2008

Frozen credit markets, sky-high gasoline prices, and a rising federal budget deficit are hurting cash-strapped states as they confront increasing congestion on the nation's deteriorating roads and bridges.

States are desperate to tap every possible source of funding - tolls on leased roads, sharp increases in taxes on motor fuels, and partnering with the private sector - to finance the building and repairing of roads and bridges.

Experts see sharp increases in states partnering with the private sector for funding. Some analysts say highway funding may be the next "sweet spot" for institutional investors as the burst housing bubble leaves firms looking for ways to put their money to work.

....... There is, however, a big downside: The company that would lease the turnpike likely would implement "aggressive toll increases" for drivers, according to a recent House Democratic study.

Posted by Info Center at 10:54 AM in Asset Sale/Lease | Permalink

Source: By Patrick Ferrell, Herald News (IL), April 1, 2008

NEW LENOX -- The Illinois Labor Relations Board has requested a hearing over whether the New Lenox Fire Protection District improperly reassigned 55 part-time firefighters in April as they were in the midst of unionizing.

........ At issue is whether the district should have negotiated with Service Employees International Union Local 73 before it took away all shift work from its part-timers, instead privatizing the department's entire firefighting ranks as the part-timers successfully culminated their unionization attempts.

........ The district has contended all along that it privatized all of its ranks because it was having difficulty filling the four of 12 daily shifts set aside for part-timers.

Posted by Info Center at 10:46 AM in Public Safety | Permalink
Tags: Illinois

Source: Associated Press (TX), Tuesday, April 01, 2008

Law enforcement officials are trying to understand how a convicted felon managed to escape from jail without anyone noticing his absence for a full day.

.......... Pena was being held at the privately operated Central Texas Detention Facility for violating terms of his supervised release.

.......... The facility is operated by The GEO Group. A company spokesman did not immediately respond to a phone message left By The Associated Press early Tuesday morning.

Posted by Info Center at 10:43 AM in Corrections | Horror Stories | Permalink
Tags: Texas