Economic impact of outsourcing
The economic impact of a decision by the Southfield school district to fire hundreds of employees and hire out-of-state contractors to do their work instead could total $31 million.
Using widely accepted economic principles, MEA economist Ruth Beier analyzed the impact of the district's decision to privatize the jobs of custodians, maintenance and transportation workers. For every $1 not earned by a former Southfield worker, the economic impact could be $2.20 or more, Beier found.
The reality in Southfield is tough for many former district employees.
Some former Southfield workers are now working jobs that pay much less than they earned as district employees. Many haven't found jobs at all. Struggling to pay bills and keep homes out of foreclosure, there's no doubt that these struggling workers are contributing to the economic crisis in Southfield, metro Detroit and the state.
In addition to the economic crisis, the personal toll is significant. I spent part of today with a former custodian who worked in the district for 26 years when she lost her job. She and her family are having a tough time making ends meet. "I just feel so worthless," Jill Wood told me through sobs and gasps.
By Karen Schulz, MEA Communications
Comments
Privatization
Prior to the privatization of bus drivers and maintenance personnel in Birmingham Public Schools, a PhD in economics who did extensive work with the State of Michigan on employee benefits had a solution.
The workers could stay employed by the district if the union was willing to give up MESSA and allow a $5 additional co-pay for prescriptions. Actual medical benefits would remain unchanged.
No way.
Where's the solidarity?
re: privatization
While I don't have any knowledge of the Birmingham situation, I will say that viewing this from the outside reveals a tactic that has been used repeatedly and is quite transparent: "Give us MESSA and we'll do whatever you want--even allow these hostages (workers) to live."
I think it does show solidarity and resolve not to be bribed and bought off like that. The issue with MESSA isn't cost--it's control. The anti-union forces in this state realize that the way to kill the MEA is to first kill MESSA.
It isn't hard to figure out with anyone using even a fraction of his or her brain power.
Hold the line, MEA!