Privatization of government services and assets is a major threat to quality public service in New York State. As the state and its local governments attempt to respond to issues such as citizen demands for tax cuts and reduced government spending, shrinking federal revenue sharing, and perceptions of a high paid and bloated workforce, the focus by legislators and government executives continues to turn toward privatization of public services as one response to alleviate these concerns. Frequently, efficiency and cost savings are arguments used by politicians advancing a privatization agenda.

The reality is that privatization of public services continues to be a growth industry in New York as well as the rest of the nation, increasing the size and profits of private industry while severely impacting the public sector. Since 1994, New York’s state workforce has been reduced by 21,000 positions. Nationwide, the figure is over 200,000. Many of these positions have been lost due to consolidation and privatization and it appears that this trend may continue if left unchecked.

In New York, public employees have become painfully aware that privatization is on the Governor’s political agenda. Almost continuously, state employees are witnessing the privatizing of services happening within their own agencies. Whether privatization takes the form of contracting-out, continued funding, expansion or creation of "shadow agencies", or the sale of assets, it is challenging and eroding public employee unions in our state while allowing profit-making corporations to flourish and "shadow" jobs to be created through the circumvention of civil service merit and fitness laws.

There has been a tremendous price paid by the public for the so-called "cost savings" and "efficiency" produced by privatization. This includes exporting taxpayer dollars out of local economies, the loss of good paying jobs, reduced public accountability, and, due to an emphasis on corporate profit, a decline in service quality. Although the public is becoming increasingly aware that privatization may not be the best solution, more needs to be done.

The concerted endeavor by some elected officials to privatize will require a strong coordinated effort on the part of PEF members to fight back. The union and its members must advance their own strategies in waging this battle. Developing a quality service argument or performing a cost analysis are among the many strategies that may in fact rebut the arguments put forth by government and create an opportunity to reverse their actions. Other strategies which unions have used in waging successful fight back campaigns have included: mobilizing their membership, using effective research, forming coalitions, enlisting community support, developing political strategies, using the media and bargaining for better contract language.

It is essential for PEF members to become aware of the signs of privatization and respond strongly to this danger. This handbook has been written to assist PEF members in planning their fight against privatization. It includes:

• Talking points
• Background information
• Early warning signs
• Preventative strategies
• Strategies to fight privatization
• Shadow agencies

Although only a reference, this handbook provides essential information to begin developing winning campaigns.