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7/29/08
Reforms to managed competition approved!
CPI and our allies won an important victory on Monday, when the San Diego City Council passed reforms to protect service quality and workers' healthcare if city services are privatized.
"The City Council took the right steps to make sure that quality city services are protected and to make sure we don't add to the ranks of the uninsured by using low-bid contractors," said Donald Cohen, CPI Executive Director.
The reforms will have three major impacts:
- Contractors won't be able to underbid the city workforce by denying workers health benefits. Differences in employer spending on health insurance are removed from the bid comparison, so that contractors can't gain an unfair advantage by failing to insure their workers.
- Open, public review will help preserve service quality. The public and the Council will be able to review descriptions of the work to be performed -- and Council approval will be required -- before the city seeks bids for privatizing any city function.
- City workers who know the jobs will have a good chance of staying on the job. Any contractor taking over a city service will have to give first preference in hiring to displaced city workers.
The Council approved the proposed reforms on a 6-2 vote, with only Councilmembers Jim Madaffer and Kevin Faulconer opposed.
Working in partnership with the San Diego-Imperial Counties Labor Council, CPI staff developed the proposed reforms to the "managed competition" process Mayor Jerry Sanders is using to privatize a number of city functions.
Delegations of community members, city workers, civic leaders and other allies met with City Councilmembers and their staff over the past week to discuss the proposals. More than a dozen people testified at Monday's meeting on the need to preserve health benefits and protect against sloppy work by contractors. Video of the meeting is available here.
CPI issued a brief report on documented failures by current city contractors that have resulted in poor service and/or extra costs as city workers had to redo the work. In an opinion column published Sunday, CPI Research and Policy Director Murtaza Baxamusa explained how privatization puts health coverage at risk.
CPI extends hearty thanks to everyone who made these crucial policy changes possible by writing letters, making phone calls, talking with Councilmembers and testifying at the meeting! We will stay involved as the City moves forward with privatization this fall, to keep the focus on the best interests of city residents and taxpayers.
Center on Policy Initiatives
3727 Camino del Rio South, Ste 100
San Diego, CA 92108 : (619) 584-5744
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