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Privatization (contracting out) is the unproven idea that public services can be provided in a more cost efficient (more services for the dollar) manner by “for profit” companies than by public employees. This notion is driven by the faulty logic that an entity, which operates for its own gain (profit), will better perform the services than the trained, professional, and dedicated public servants. This notion began to gain momentum during the 1980s. The revenue crisis created by a series of tax measures, which shifted the tax burden away from corporations and unto the backs of working people, resulted in mounting fiscal constraints at all levels of government. Simultaneously, the same forces that sought to reduce the tax burden of corporations escalated an unrelenting attack on the quality of services and education offered by our nation’s public schools. The American public education system has been the vehicle by which working people have achieved social, political, and economic equality. Privatization endangers our public school system. Across the U.S. and here in Oregon, working people are fending off attempts to privatize their jobs as “for profit” corporations hunt for new markets and more wealth.
The primary goal of the public employees in our public schools is to provide a complete educational experience for the learners of their communities. The primary goal of private corporations is to make a profit. If they don’t make a profit, they don’t stay in business. Therefore, in order to reduce costs and increase profit, contractors often dramatically reduce wages and benefits and cut staff, services, and supplies. Contractors cut costs by reducing the hours of workers and contractually limiting services. Contractors “low ball” bids in order to secure a contract. Then, once a school district is dependent on the outside contractor, the price of services will increase. The contracts that are negotiated between the contractors and the school districts often provide substantial additional costs if school districts require contractors to provide any services beyond those specified in the contract.
Privatization hurts workers, communities, and schools. In every case of privatization, public employees suffer layoffs, reduction of wages, and reduction or elimination of benefits. Privatization will crush the morale of dedicated public employees. Women and minority workers bear a disproportionate amount of the burden caused by privatization. Communities absorb the social costs of laidoff workers and reduced health and pension benefits. Communities lose revenue when profits go to out-of-state, or even out-of-country, corporations. Privateers have their own management structure and not only does this add an additional layer of bureaucracy, it also permits contractors to be less accountable to the public employer. OSEA has many examples of the negative effects, especially safety concerns, that privatization has on our public schools.
Due to the damage that privatization can cause to our schools, our children, public school employees, and our communities, OSEA seeks to make Oregon public schools off-limits to privatization. In order to accomplish this, OSEA is waging a statewide campaign called InSource Oregon to educate Oregon about the pitfalls of privatization. Since school boards and administrators have been bombarded with distorted information about privatization since the 80s, they must be further educated about how privatization hurts our schools. OSEA funded the research for the University of Oregon’s (U of O) white paper entitled “All Costs Considered: A Report on the Contracting Out of School Support Services in Oregon.” This report, researched, analyzed, and written by Dr. Gordon Lafer and Dr. Bob Bussel, goes into great detail about the true dangers and pitfalls surrounding privatization of support services. OSEA has an in-service educational curriculum that is being circulated to Oregon school districts and to OSEA members. OSEA also has staff trained on the subject of privatization. Simultaneously, OSEA is seeking legislative reforms that will increase revenue to schools and provide more quality benefits for public school employees, e.g., improved and less expensive medical plans. OSEA welcomes requests to speak or to present our education curriculum to members of OSEA, school boards, or groups in the general public. If you are concerned about any aspect of privatization or fear that privatization could affect your school or you personally, please contact the OSEA Field Office in your area and speak to a Field Representative, or contact the Department of Field Operations directly.
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