LYCOS RETRIEVER 
Privatization: Contracts
built 615 days ago
[One] criticism of privatization under Mayor Daley is that contracting with private firms is simply a way of evading the Shakman decrees, strict rules limiting the use of traditional political patronage hiring. Critics have labeled efforts to subvert Shakman and steer contracts to friendly firms “pinstripe patronage.”
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Significant new privatization initiatives, particularly those that involve determining eligibility for income assistance, are likely to raise substantial concerns on the part of public employees, labor organizations and advocacy groups. It is important that these concerns be addressed forthrightly. Policy makers may identify alternative approaches that can achieve similar objectives within the public sector, or clarify the contract provisions and performance requirements needed to protect both the public interest and the clients who will be served by private providers.
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In addition, vigilance by union members is an important component in fighting privatization. Union members must be constantly aware of bids for contractual services and be prepared to prevent privatization in any form in any agency. Moreover, monitoring existing private providers and documenting poor services is important for fighting future public relations and legislative battles.
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- Herbert Winokur, a director of both Enron and Harvard, has ... funded several reports recommending privatization of defense services. Winokur is a leading investor in Dyncorp, a major defense contractor, and is the former CEO of DynCorp. The Herbert Winokur Fund at the KSG provides another example of how Winokur influenced Harvard's research agenda for corporate and personal enrichment.
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It is widely recognized that the best defensive strategy against privatization is the outright prohibition of contracting out. While generally achieved through bargaining or through legislative action, prohibition may occasionally be achieved through litigation.
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