Throughout BC, CUPE members have been key players in the effort to keep services public or bring them back in-house. Our members have led effective campaigns to ensure that residents are getting cost-effective, transparent and reliable services. This compilation of stories, first published in CUPE BC’s Public Employee magazine, highlights some recent contracting-in success stories.
What Happens When Privatization Doesn’t Work Out
Source: Katherine Barrett and Richard Greene, October 2016
Privatization is one of the hottest topics in state and local government. Google the word and you come up with around 12 million entries. But for all the articles and academic reports on the best approaches to outsourcing government services, there’s also a surprising amount of activity around insourcing. These days, roughly the same percentage of services that are newly being contracted out are being brought back into the government fold, according to Mildred Warner, a professor of city and regional planning at Cornell University. Her examination of data accumulated by the International City/County Management Association (ICMA) for the period from 2007 to 2012 showed that new outsourcing accounted for 11.1 percent of all services and new insourcing accounted for 10.4 percent of all services. … According to Warner’s analysis of ICMA data, the two main reasons governments reverse their privatized services are inferior service quality and a lack of anticipated cost savings. Additionally, improvements in the capacity of local governments to work with greater efficiency can make them the more appealing alternative. …
Back in House: Why Local Governments are bringing services home
Source: Keith Reynolds, Gaëtan Royer and Charley Beresford, Centre for Civic Governance, 2016
Back In House: Why Local Governments Are Bringing Services Home, a new report from the Columbia Institute, is about the emerging trend of remunicipalization. Services that were once outsourced are finding their way back home. Most often, they are coming home because in-house services cost less. The bottom-line premise of cost savings through outsourcing is not proving to be as advertised. Other reasons for insourcing include better quality control, flexibility, efficiency in operations, problems with contractors, increased staff capacity, better staff morale, and better support for vulnerable citizens. When services are brought back in house, local governments re-establish community control of public service delivery. The report examines the Canadian environment for local governments, shares 15 Canadian case studies about returning services, follows-up and reports back on two earlier studies promoting contracted out services, provides a scan of international findings, and shares some best practices and governance checkpoints for bringing services back in house. Many of the local governments examined employ CUPE members. As part of our ongoing work to promote the value of publicly-delivered services, CUPE helped fund the production of the Columbia Institute report Back in House