About Privatization

It's important that all public employee union members recognize that privatization is often a political decision and starts through contracting out.

Many OCSEA activists understand that privatization is the movement by government to shift jobs and service delivery to the private sector based on a philosophy that private companies can always perform better than public workers.

Privatization supporters promise to ease this burden through lower costs — a very attractive idea to elected officials attempting to avoid politically unpopular tax increases. 

During difficult economic times, public employers are faced with the task of providing a constant level of public service with decreasing amounts of tax revenue.  During good economic times, politicians push for privatization as a way to lower costs and pay for proposed—and politically popular—tax cuts.

The government may contract out for various non-economic reasons:

• It is a politically popular idea that the general public approves.
• Contracts may be used as a pay-off to political supporters
• Hiring a private contractor means that the employer will not have to deal with unions or civil service law, giving them more power over the work force.
• Avoidance of overhead and administrative costs.
• Technical expertise available on the outside.
• Politically easier to contract out than to lay off employees.
• Relieves government of its responsibility to manage adequately and professionally.