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Just Say 'No' — To Privatization

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Governments across the country continue to flirt with contracting out, and AFSCME continues to defeat these ill-advised schemes. We've recently scored notable victories in that regard:

California — A Superior Court judge enjoined the Alameda County Medical Center (ACMC) from privatizing the jobs of 40 salaried psychiatrists and primary care physicians who work at the John George Medical Center. The action came at the request of the Union of American Physicians and Dentists/ AFSCME Local 206, which has represented the doctors for more than 20 years. The ACMC's board of trustees wanted to give a contract for John George medical and psychiatric services to a company called Becton Healthcare Resources, ignoring a UAPD offer that included a freeze on wages and benefits over the 25-month life of the proposed agreement. Savings under that agreement, the UAPD calculated, would total $880,000.

"The injunction is tremendously important," says the UAPD's Dr. Milton Lorig, a psychiatrist at the center. "It allows us to meet and confer, and to take the issue to arbitration, giving us the opportunity to build the case demonstrating that there's no need to contract-out this work. The company has exploited the center over the years and given care inferior to what the public employees provide."

Connecticut — A strong grassroots drive by members of Council 4 propelled through the legislature a remarkable piece of legislation: a prohibition on privatization and contracting out by state and quasi-public agencies for as many as four years. Passage of the bill provides a textbook case of savvy use of a political opportunity: Connecticut was rocked some months ago by the resignation of Gov. John Rowland (R) in the wake of revelations that he had accepted gifts from companies and individuals that do business with the state. Distrust of vendors has therefore been running strong, and leaders of Council 4 and other unions took full advantage of it — mounting an effective lobbying and media effort.

Tennessee — Local 1733 helped deal the Corrections Corporation of America, a major privatizer of prisons, a sharp and surprising blow. The local, as part of the Grassroots Leadership coalition, convinced the sheriff and mayor of Shelby County to reject CCA's proposal to privatize management of the county's prison and jail. The decision saved over 1,500 jobs held by local members and cost the company a contract worth $200 million plus cash incentives worth at least $30 million per facility.