The problems are well documented. Northrop Grumman botched the upgrade to New York City’s 911 systems while billing the city $300,000 to $430,000 annually for each of their 137 consultants. A $132 million dollar contract to upgrade phones and Internet services for municipal agencies in Orange County, California is already $13 million over budget while municipal employees report repeated outages and failed solutions from the contractor, Xerox. And who can forget all those failed Obamacare exchange websites brought to us by mega-information technology contractors such as CGI and Oracle?
For too long, local and state governments have turned over control of their critical digital infrastructure to companies claiming they could do the work cheaper and faster than public employees. But after the last few years of failures, cost overruns, and plain old shoddy work, local leaders are finally realizing that in this digital age,
Halloween is the time of year dedicated to scary stories, and in In the Public Interest report, “Out of Control,” there are 26 frightening and factual tales of how the push for government outsourcing is hurting taxpayers around the country.
You will be horrified by the real-life examples of Americans tricked by privatization, from a nun fighting cancer who was wrongly dumped from food stamps and Medicaid to foster children placed in severely abusive homes. Privatization is something to be feared when our elected officials aren’t carefully protecting the public’s interest.
We work every day to prevent future privatization horror stories from creeping and crawling their way into our democracy. Because just like Chicago, which leased its parking meters for 75 years to a Morgan Stanley-led private consortium, a bad privatization deal can haunt a community for generations.
Show off your Halloween spirit and share this terrifying report on twitter using the hashtag #PrivatizationHorror.
Introducing for-profit companies into America’s criminal justice system has been a bad deal for governments across the country.
During the past several years, a movement opposed to profit incentives in our criminal justice system has grown. Private prison corporations such as Corrections Corporation of America and GEO Group have come under increasing scrutiny and pressure for cutting corners, contracts that include “occupancy guarantees” of 80, 90 and even 100 percent, and unsafe prison conditions.
But it’s not just the prisons that are handed over to CCA or GEO Group. Almost every service delivered inside the prison is being outsourced to for-profit corporations. Outsourced inmate health care, food and commissary services, telephone and financial services like money transfers between families and inmates are all adding to the poor conditions in prisons and burdening inmates and their families with extra costs.
For example, earlier this month, the Palm Beach Post broke the story of the deplorable treatment of prisoners by health care contractors in Florida prisons as contractors seek to maximize profits by cutting costs.
(Note: The following opinion piece was written by a single mother of two children who fears losing her job. For this reason her name has been withheld.)
What does “Made in America” mean to you? For consumers, it means a quality product. For workers, it means a good paying job and an opportunity to achieve the American Dream. Yet “Made in America” can also stand for opportunity to exploit workers under harsh conditions and unfair wages. That’s what it means in the manufacturing plant where I work in Commerce.
I’ve worked three years for Huhtamaki, a Finnish-owned packaging manufacturer located in the Los Angeles area. We make ice cream containers and other products for Walmart. And the job, it’s just not what people are talking about when they talk about investing in new manufacturing jobs in our country.
As a single mother of two, making ends meet is hard.
In a scene right out of Orange Is the New Black, 1,000 inmates at the Ohio Reformatory for Women in Marysville, Ohio dumped their food in protest last week after maggots were found in the kitchen and dining areas. The prison’s food service program had been outsourced to the massive Aramark corporation.
Maggots have also been discovered in seven other prisons around the state – and Aramark runs the food service programs in all of them. Last month, maggots were discovered in two Michigan prisons where Aramark also runs the food service programs. The Philadelphia, PA-based corporation hasn’t taken responsibility, and officials in both states are sticking by the vendor, responding with small fines instead of canceling the contracts. Ohio fined Aramark $270,000 and Michigan Governor Rick Snyder fined the company a mere $200,000.