Category Archives: Maintenance

Public Workers Worried That Tennessee’s Billionaire Governor Is Taking Another Run at Them

Source: David Dayen, The Intercept, April 4, 2018

LAST YEAR, TENNESSEE’S governor attempted a frontal assault on the unionized workers that staff the state’s facilities and management jobs at public buildings, two-thirds of which are state-run colleges. Gov. Bill Haslam, the richest U.S. elected official not named Donald Trump, signed a contract with a facilities management firm to privatize those jobs. But a prodigious campaign by the campus employee union and student activists led to nearly the entire University of Tennessee system publicly opting out of the contract. … But Haslam appears to have found a work-around. The Tennessee legislature is on the verge of passing a bill to overhaul the University of Tennessee’s entire board of trustees, allowing Haslam to hand-pick the replacements. That board could pressure campuses to opt back into the privatization contract at any time over the next four years. …

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How a Scrappy Campus Union Saved Tennessee From Privatization
Source: Chris Brooks and Rebecca Kolins Givan, In These Times, March 20, 2018

… The resulting $1.9 billion contract was the largest in Tennessee government history, and privatized the maintenance and management of up to 90 percent of state-run facilities, including state and university buildings. It was awarded to Jones Lang LaSalle (JLL), a multinational with a history of bribery accusations. … What the privatizers didn’t plan for was the United Campus Workers (UCW), a scrappy higher education union affiliated with the Communication Workers of America (CWA). Public-sector unions in Tennessee are legally barred from engaging in collective bargaining, and the state has no obligation to recognize or negotiate with them. Instead, the union relies on a mixture of legislative advocacy, workplace actions and mass mobilizations. Few unions exist in a harsher political and legal environment, yet the UCW is punching far above its weight, increasing its membership while securing victories against better-funded foes. …

Workers’ unlikely victory over outsourcing in Tennessee
Source: Elizabeth Stanfield and Jon Shefner, Facing South, February 6, 2018
 
Last fall, United Campus Workers-Communications Workers of America Local 3865 (UCW) achieved an important victory for organized labor’s fight against privatization and erosion of public-sector jobs. For more than two years, they campaigned to stop Tennessee’s billionaire Republican governor, Bill Haslam, from outsourcing all state facilities service jobs. Their campaign involved multiple constituencies and tactics and played a key role in the University of Tennessee system’s decision not to participate in the outsourcing contract. The fact that this victory was won in a red state by a union without collective bargaining or dues check off is a powerful reminder of what organized workers can achieve against great odds. This victory is worth paying attention to because it reminds us that even in the face of tremendous obstacles, organized workers can win. …

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The Privatization Agenda Goes Bust

Source: Tom O’Leary, Jacobin, January 18, 2018

The collapse of Carillion, the mammoth UK government contractor that went bankrupt Monday, was wholly made in Britain, although it has negative consequences internationally. The reason for Carillion’s bankruptcy, which puts vital public services and thousands of jobs at risk, is that the firm and its component companies grew fat during the first phase of neoliberal economic policy and could not cope with the more recent phase, austerity. The immediate cause of the collapse is a failed acquisition spree since the crisis began. Yet the underlying cause is the disastrous relationship successive governments have had with the private sector. Whether the Thatcher, Major, and Blair governments believed the nonsense they spouted about the superior efficiency of the private sector is immaterial. Only the willfully ignorant could ignore the litany of failed privatizations and the extortion of PFI “public-private initiative” contracts that followed their policies. The real purpose of Thatcherite economic policy, which has become widely known as neoliberalism, was precisely to hand state resources and revenues to the private sector. …

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Carillion directors to be investigated
Source: BBC, January 16, 2018

The government has ordered a fast-track investigation into directors at the failed construction firm Carillion. The UK’s second biggest construction firm went into liquidation on Monday, after running up losses on contracts and struggling with heavy debts. The business secretary has asked for an investigation by the Official Receiver to be broadened and fast-tracked. The conduct of directors in charge at the time of the company’s failure and previous directors will be examined. Carillion’s business is now in the hands of the official receiver, which is reviewing all of Carillion’s contracts. The company employed 43,000 people worldwide, 20,000 in the UK, and had 450 contracts with the UK government. …

Carillion’s Government contracts could have been stopped by a single law. Why wasn’t it used?
Source: Hazel Sheffield, Independent, January 16, 2018

Carillion is part of what is known as ‘the shadow state’: a group of large companies secretively awarded government contracts to run Britain’s public services. There are others. …

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New Haven Housing Authority restructuring for private investment

Source: Mary E. O’Leary, New Haven Register, January 2, 2018
 
The Housing Authority of New Haven will start issuing layoff notices on Friday as it restructures, but said there will be opportunities to seek similar jobs under a new nonprofit company it has formed.  A total of 50 people at the authority will be affected throughout 2018, according to the authority, but it plans to hire between 40 and 45 people for similar positions in a restructuring it said is needed to ensure its financial stability. … The authority already has one affiliate, the Glendower Group, which oversees its construction projects. It now has formed a second nonprofit affiliate, 360 Property Management Co., which eventually will oversee the maintenance and security of 1,300 housing units, as well as handle leasing. … DuBois-Walton said the new jobs, which are almost one for one with the current positions, will reflect private market salaries, which will be less than those negotiated by the two American Federation of State, County and Municipal Employees locals representing workers. …

Editorial: Laketran, Painesville Township applauded for cost-saving efforts

Source: The News-Herald, December 2, 2017

… At Laketran, an idea that will save money and potentially produce revenue arose after the transit agency began having difficulty finding vendors to perform alignments on its 35-foot transit buses and 40-foot commuter coaches. As Bare considered alternatives, he came up with an idea that led back to Laketran’s own maintenance garage. He suggested Laketran bring alignment service in-house with potential to sell the services through governmental agency contracts. … “We believe there are other governmental agencies, like the county or local school districts, that may be having the same difficulties,” said Laketran General Manager Ben Capelle. “Once our maintenance department is trained and we have a general idea of how much time the alignment will take, we plan to offer alignment services to governmental agencies within Lake County. … So with a state-of-the art alignment machine and a staff of highly skilled mechanics, Laketran has positioned itself to not only save on maintenance expenses for its own bus fleet, but also to work with other governmental agencies who need similar work done on their buses or trucks. The concept of regionalism — government entities from different nearby communities sharing services, personnel or programs to save money for all parties involved — has become quite popular in recent years. So give Laketran credit for seeing how doing alignment services in-house was a smart idea. …

Monroe County Commissioners hear engineer requests

Source: Dylan McKenzie, Times Leader, December 5, 2017

The Monroe County Engineer’s Office brought several items before the county commissioners Monday, including the possibility of contracting out for grass mowing services. County Engineer Amy Zwick talked with commissioners about the possibility of hiring outside help for grass mowing services in the future. Zwick said her employees are members of the American Federation of State, County and Municipal Employees union, and the county is in the process of negotiating a contract with the union. Zwick said that depending on how negotiations go, the county might have to lay off some employees, which would force her to look for help with services that are not strictly essential to the county, such as grass mowing. She asked the commissioners if it would be possible for them to contract directly through their office to get the mowing done if necessary, adding that even if negotiations go well she would still need new tractors for mowing, which could be expensive. …

Lawmakers, union leaders want MBTA privatization reigned in

Source: Metro, October 3, 2017
 
The MBTA privatization debate may change course after lawmakers urged their colleagues Monday to start rolling back the privatization powers they granted the T after the disastrous 2015 winter.  After winter storms suspended the MBTA’s train service more than once, lawmakers gave Gov. Charlie Baker three years to fix the T without the constraints of the Taxpayer’s Protection Act, called the Pacheco law. That law requires private contractors to prove cost savings and no service reduction before any state service can be outsourced.  Since the law’s suspension, the MTA has outsourced cash handling and equipment management operations and is considering privatizing bus maintenance at three garages. …

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Quincy officials to speak against privatization of Quincy T facility
Source: Sean Philip Cotter, The Patriot Ledger, September 22, 2017

As the prospect of privatizing services at the MBTA maintenance garage in Quincy approaches, two Quincy officials plan to speak in a state Senate hearing against the prospect. State Sen. John Keenan and state Rep. Tackey Chan will speak Oct. 4 before a hearing of the Senate Committee on Post Audit and Oversight, letting their concerns about privatizing the operations of Quincy’s and similar garages. The T’s request for proposals for contractors to take over up to three garage’s operations are due on Wednesday. If the T wishes, the contractors could begin operations around the start of the new year, according to the request for proposals the agency issued in July. …

MBTA union blasts Baker’s privatization plan
Source: Christian M. Wade, Gloucester Times, August 14, 2017
 
Union workers at the MBTA are pushing back against Gov. Charlie Baker’s plans to privatize bus maintenance, saying it will cost jobs and compromise safety.  Hundreds of workers rallied Thursday outside the MBTA’s Lynn garage, where they blasted Baker’s support for hiring private companies to take over bus maintenance.  “Gov. Baker has chosen to gamble with the taxpayers, the safety of riders and the livelihoods of these hardworking men and women,” said Michael Vartabedian, who heads the International Association of Machinists Local 264, a union representing 120 MBTA bus maintenance machinists. “We won’t let core public services like MBTA bus maintenance be dismantled and destroyed.” …

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Niles Township High School Union Contract Ushers In New Era

Source: Tom Robb, Journal & Topics Online, August 23, 2017

The Niles Township High School Dist. 219 Board of Education on Aug. 15 approved a new contract for the Niles Township Federation of Teachers and Support Staff, who earlier the same day voted to accept the July 1, 2017-effective agreement. … Under the new agreement, 37 staff support positions currently performed by outsourced contract workers will become direct district employee positions. The contract also covers 369.5 full-time teachers and 205 support staff.
Maintenance, clerical and librarian jobs that were contracted would become district union employee positions. Cafeteria, janitorial, security and transportation workers would remain contracted. District and union officials said district employees would have preference in hiring to fill those positions.

… The shift from contracted workers to direct district employees is significant. According to union President Ann Goethals, former Supt. Nanciann Gatta was on record as wanting to have only teachers and paraprofessionals working as classroom teacher aids to be in union bargaining units. Before her departure in 2015, Gatta told the Journal she was trying to outsource non-core educational positions in the district. Supt. Steven Isoye said the having the majority of workers in the school as direct employees generates better productivity. Union members complained bitterly at a school board meeting last year about contracting and outsourcing positions. …

Operators picked for privatized state parks near Delta

Source: Sam Friedman, Fairbanks Daily News-Miner, August 3, 2017
 
The Alaska Division of Parks and Recreation announced earlier this summer that, because of budget cuts from the Legislature, parks employees would cease providing services such as trash pickup and outhouse cleaning at six state parks around Delta Junction.  The state put those maintenance services out to bid in July. Under the contracts, the businesses are to provide services and collect fees from park visitors for amenities such as parking, camping and boat launch use. In return, the businesses pay a flat fee to the state as well as a percentage of revenues from the businesses. …

N.J. Lottery Sales Fall Short Following Privatization

Source: SNJ Today, April 18, 2017

Those hoping to win big in the New Jersey State lottery are spending less on their dreams.  State lottery sales are down for the third year since being privatized.  Lottery operations management firm Northstar New Jersey promised a return of more than $1.4 billion over 15 years when New Jersey Governor Chris Christie moved the games to privatization in 2013.  Since then, Northstar has missed its income projections and spent $20 million in allowance funds to cover financial shortfalls. …

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Privatizing lottery isn’t lucrative deal for New Jersey
Source: Michael Catalini, Associated Press, January 9, 2016

New Jersey might get $1 billion less out of its state lottery as part of an amended 15-year deal with the private company that runs part of it, according to an Associated Press analysis. The deal, unveiled by Gov. Chris Christie’s administration on New Year’s Eve, also reduces the amount the company must generate to avoid penalties. The revenue targets that Northstar New Jersey has to meet have been lowered by about $76 million per year over the contract, which was struck in 2013. The total revenue projection was decreased from nearly $16 billion to about $15 billion. … The underperformance — including a $5 million drop in revenue in 2015 — has raised questions from Democrats about the privatization strategy championed by Christie, a 2016 Republican presidential candidate who promoted lottery outsourcing as a way to shrink the government’s payroll and bring in more cash. The lottery brought in $960 million in fiscal year 2015, down from initial expectations of a little more than $1 billion.

New Jersey Having Second Thoughts After Privatizing Lottery
Source: John Reitmeyer, NBC Philadelphia, October 8, 2015
Two years after New Jersey turned over some state lottery functions to a private venture under a controversial long-term deal, lawmakers are questioning why revenues have not met expectations and whether the privatization contract is worth it. The Senate Legislative Oversight Committee announced yesterday that it will hold a hearing on October 19 to review New Jersey’s deal with Northstar New Jersey to address concerns raised in recent weeks about fees Northstar is collecting even as it has failed to meet net-revenue targets. An Assembly committee is also scheduling a hearing on the deal. … Gordon, the Senate committee chairman, said the hearing on October 19 will also review the broader privatization issue, and whether the state is up to the task of monitoring such large contracts. He cited problems the state has had with private companies handling some of the recovery efforts in the wake of Superstorm Sandy in 2012 as another reason to broaden the scope of the hearing.

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Custodians, maintenance workers believe CMU admins could privatize workforce in the name of budget adjustments

Source: Ben Solis, Central Michigan Life, March 26, 2017

Some custodians and maintenance staff employees have concerns about layoffs and outsourcing, according to the president and other members of the union that represents them.  As Central Michigan University administrators grapple with a two-year $20 million budget deficit, service, maintenance and custodial employees on campus believe both situations are likely, said Karen Witer, president of AFSCME Local #1568 and a custodian at CMU. … AFSCME’s fear of staff cuts is compounded by its upcoming negotiation of a new service contract. The union also believes CMU’s history with privatization is a sign that its workforce could be outsourced as well.  AFSCME and the university are expected to begin negotiations sometime after spring courses end in May.  When AFSCME members seek higher wages for employees making $10.08 an hour, Witer said her group is commonly confronted with talk of privatization. … CMU outsources some of its custodial work to Romanow Building Services, a Saginaw-based company, said Barrie Wilkes, vice president of Finance and Administrative Services. The university also privatized its dining services by contracting with Aramark in the mid 1990s. … Witer believes Romanow could potentially take over all custodial services at the university if administrators think the company is more affordable and more efficient. …