Recent hearings and actions have focused on a discussion regarding the privatization of many public sector services. If these recommendations are enacted by state legislatures, it could lead to displacement of public sector jobs; a loss of accountability; corruption and a reduction in services at greater costs.
Corporations, such as Lockheed, Martin, Maximus, Policy Studies Incorporated (PSI), and G.C. Services (a private collection agency) are pushing for privatization of Medicaid and other human services for their own self interest.
The Indiana State AFL-CIO opposes the displacement of public sector workers and the transfer of public services to privateers through privatization or contracting-out for the following reasons:
- This action will create statewide private company monopolies.
- In states where state services have been contracted-out, huge cost overruns regularly occur. Wrongful denial of benefits has severe consequences to the disabled, the elderly, and other individuals for whom the benefits were intended.
- Federal/state benefit entitlement programs were created in ways to prevent fraud and assure fair and efficient provision of benefits. A private company must reflect a profit for investors, which leads to a climate to limit provisions of benefits for eligible beneficiaries.
- There is no evidence of displacement protections for public sector workers who have provided services for government and who answer to officials elected by the voters.
The Indiana State AFL-CIO supports and urges the enactment of legislation which assures that no work assignment be created as the result of, or result in:
- the displacement of any currently employed individual or position, including partial displacement, such as a reduction in hours, wages, or benefits-,
- the infringement of the promotional opportunities of any currently employed
- the prevention of return-to-work of any currently employed individual who is on temporary leave of any kind;
- the employment or assignment of a participant or the filling of a position when (1) any other individual is on layoff from that position or a substantially equal position, or (2) the employer terminates the employment of any employee, or otherwise reduces its workforce then fills the vacancy with a participant;
- the filling of any established unfilled position with a participant;
- the impairment of existing contracts for services; or.
- a strike, lockout, or labor dispute, or violation of any existing collective bargaining agreement between the employee's collective bargaining representative(s) and the employer.
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