May 9, 2006

Policy

Defending Quality Public Services

Preamble

The PSAC supports strong public services and service delivery and remains unalterably opposed to privatization of public infrastructure and public services.

Quality public services are essential in building strong economies and inclusive societies. Privatization undermines the ability of public sector workers to provide the kind of services to the public that they would like to provide. The PSAC's People behind the Services Campaign in 2004 highlighted this commitment.

After 20 years of pro-privatization policies, neither Canada nor the world are better or fairer places to live. The gap between rich and poor has widened.

Unions are advocating a more positive alternative of government investment in quality public services through adequate financing, improved accountability, better jobs and accessible, affordable and relevant services. While the PSAC recognizes the importance of a strong private sector in our country's economy, we firmly believe that a strong public sector is vital to provide the necessary physical and social infrastructure for our economy and our society to function. Privatization at all levels of government in Canada and around the world is expanding, both in terms of the number of privatized services and in how the services are privatized.

Privatization does not always take the form of high-profile sell-offs of government-owned assets or of its services. It can take many forms, such as public-private partnerships, contracting-out of services, or shifting regulatory responsibility to private firms or centralizing services in one department or agency to help facilitate future privatization. These forms of privatization also have negative impacts on unions, government workers, and the quality and quantity of services available to the public.

Privatization eliminates authentic public services by reducing public accountability and increasing foreign ownership and control of important Canadian services and infrastructure. It also creates unstable and uncertain employment relationships and undermines employment security.

Governments in Canada and around the world who privatize service and service delivery do so to reduce employment levels, enhance corporate profitability, reduce service and cut taxes. By doing so, they are: reducing the capacity of the public sector; undermining both physical and social infrastructures; putting sovereignty at risk; and, undermining public accountability and personal privacy.

Governments have an obligation to promote public services and enhance their quality to the benefit of all members of society. We have an obligation to hold them to account and ensure that services are provided where and when needed.

The Current State of Privatization in the Federal Public Sector

Privatization is happening on a daily basis within the federal public sector:

• According to the government's own figures, federal spending on contracted out professional and special services has jumped more than 50 per cent over the last 10 years, reaching $6.5 billion a year in 2004. Many of these services replace work that had traditionally been done by our members. These expenses represent a potential source of work that could be "contracted back in," thereby improving service and creating long-term jobs.

• Contract workers, many of whom are directly employed by large Canadian and multi-national corporations, are working beside our members.

• Services are being reduced in a range of areas that Canadians need and deserve.

• Parts of the operation of Service Canada are being provided by third party and private providers. Public Sector delivery is becoming more irregular, potentially leading to further privatization. Workload and stress are increasing and workers' jobs are being deskilled.

• The exploration of potential public-private-partnerships was on the agenda of the Martin government and can be expected to remain a priority under the Harper government.

• Alternative Service Delivery, a synonym for privatization, has transferred the delivery of many public services to private companies that are motivated by private profit rather than service quality.

The Current State of Contracting-Out in Other Sectors

Territorial and municipal governments are also experiencing increased privatization. Museums, Crown Corporations, Airport authorities and other workplaces where PSAC members work and who also provide services to the public are relying more on contracting-out.

The majority of Canadians agree with the need for strong public services. Like federal workers, they are concerned about the declining quality and quantity of government services, and support demands for reinvestment. They share our concern that all levels of government are cutting funds for important programs, neglecting services and reducing employment levels within public departments, agencies and crown corporations. Polling shows that the public is at least very skeptical about the privatization of public services, if not strongly opposed to it.

The PSAC is committed to long-term and comprehensive actions to ensure that quality public services are preserved and remain publicly delivered. We are committed to stopping the contracting-out of all work done by our members. We will take the following actions immediately:

Executive Oversight and Guidance

1. Beginning immediately, an AEC Officer will be given a portfolio assignment that includes all aspects of privatization, contracting-out and workplace change that undermines delivery of Quality Public Services. The officer will be responsible for the overall implementation of the policy. This Officer will also guide the work of the NBoD Privatization, P3 and Contracting-out Committee, related joint research projects and any internal staff working groups that are deemed necessary to ensure the Union 's goals are met and to facilitate proactive planning for emerging issues. This Officer will also provide leadership on the issue of privatization in the collective bargaining process.

Collective Bargaining

1. The NBoD Collective Bargaining Committee will develop contract language and draft memoranda of agreement designed to enhance job security by contracting-in public sector work currently performed by private sector companies, to increase the obligations of the employer in instances of devolution to other levels of government; and to update, strengthen and improve the language and protections in Workforce Adjustment provisions.

Research

1. A strong research program is essential to support the Union 's agenda for strong public services. Joint research projects undertaken with like minded research organizations, including the Canadian Centre for Policy and York's University's Centre or Research on Work Society will track and expose the level of contracting-out and privatization taking place in the federal public sector, with a particular focus on both professional services and clerical and administrative work that should be performed by PSAC members. It will also examine the impact of altering the regulatory/inspection regime and investigate the effects of the Service Canada and Shared Services experiments. Internal research projects will include a strong membership consultation component.

2. Work with Components and Locals to develop a “contract watch” system that will allow members to identify contracts being let out within their department, agency or Crown Corporation which could be done in-house, or be “contracted in”.

Emerging Issues and Component Fightback Campaigns.

1. Every effort will be made to work with Components to ensure that campaigns to stop privatization in all its forms are priority areas for funding under the PSAC Emerging Issues and Component Fightback Campaigns to ensure that together we effectively address issues of privatization as they arise.

Communications

1. The destructive impact of contracting-out, privatization and P3's will be highlighted in PSAC publications as well as any public awareness campaign undertaken by the PSAC over the 2007-2009 budget cycle and ensure that internal and public campaigns against privatization are a priority for resources in the event of a surplus allocation during the 2007-2009 budget cycle.

2. We will continue to work with the Canadian and international public sector unions, the Canadian Labour Congress, the Public Services International and Union Network International to identify, monitor and challenge private companies, think-tanks and other groups such as the Canadian Council of Chief Executives that promote private delivery of public services, diminished regulatory regimes and increased economic and regulatory integration with the United States.

Political Action

Successful political action must be strategic, well coordinated and involve all structures of the Union including locals, Components, Area Councils, Regional Councils, all Regional Committees, the Alliance Executive Committee and the National Board of Directors.

The Union will:

1. Ensure that p rivatization will be included in membership lobbies of federal Members of Parliament and will be highlighted as an issue in the next federal election.

2. Press the government for full disclosure of all financial information related to contracting-out and privatization, including all tendering documents and internal valuations.

3. Press the government for a commitment that any legislation or policy mandating contracting-out/privatization includes provisions protecting the acquired rights of PSAC members, including collective agreements, collective bargaining rights, mobility within the public sector, worker protection during the transition from one labour relations legislated regime to another pension entitlements and rights.

4. Press the government to discontinue the use of private temporary help agencies and to create its own agency to address the government's requirements for temporary help.

5. Collaborate with other unions and like minded social action groups to fight for quality public service delivery at all levels of government and for all public services where it makes sense to do so.

6. Become more engaged in national and international coalition work that challenges the pro-privatization policies of the international financial institutions, and the “free trade” agreements that make way for privatization and profit to the detriment of public services in every corner of the world.

7. Promote and attempt to ensure that Canadian union-made goods and materials are utilized in the provision of public services by the Government of Canada.

Organizing

1. PSAC will work to organize all unorganized, non-unionized workers of contractors who provide a service normally provided by workers of federal government departments, agencies and crown corporations. The PSAC will continue its practice of fighting for successor rights and recertification when services are privatized.

Education

1. Modules on all aspects of privatization, contracting-out and workplace change that undermines delivery of Quality Public Services will be developed and integrated into PSAC education courses to ensure PSAC members have the analysis and tools necessary to successfully stop these initiatives.

Social Justice Fund

1. Through the Social Justice Fund, the Union will encourage initiatives that expose the new forms and impacts of privatization on our brothers and sisters in the South that make the links with our reality in Canada , and develop common strategies and responses to privatization.

The Principles and actions outlined in this policy will, where applicable, be applied to all government and private employers where PSAC members are employed.