Privatization

Barack Obama:

There is honor in public service at every level. Our public servants deserve respect and fair treatment and our taxpayers deserve to have their money spent wisely. But over the past several years, we have seen a new “Ownership Society” philosophy in Washington that says government has no role in solving our problems and that the services provided everyday by government employees are better left to the whims of the private sector. I have been a consistent critic of this philosophy.

We should not privatize public services for the sake of privatization. The benefits of privatization are often outweighed by the devastation caused to communities by a loss of jobs or health care benefits. And often, services that are contracted out were being done well and efficiently by public servants.

I would use strict guidelines when determining whether to contract out any government service. I will not contract out vital government services without first considering whether the private sector can actually provide a better service and whether so-called hidden costs of privatization are fully accounted for in the cost estimate. I will also require consideration of the economic impact of every privatization proposal for the federal government.

In the event that contracting out may be appropriate, it is important that the federal government attach serious conditions and provide accountability mechanisms to make sure that privatization is not used as an end-run around federal labor standards. We can mandate, for instance, that contractors continue to adhere to government hiring preferences and requirements. In the wake of Hurricanes Katrina and Rita, the Administration waived Davis-Bacon requirements, which ensure that workers receive prevailing wages. I was an original co-sponsor of the bill to repeal this waiver; all federal contractors must be accountable to our nation’s labor laws and workers must be ensured fair treatment and fair wages In that vein, I also believe that we need to make clear that private contracts will not be awarded if minimum wage and benefit standards are not met.

Finally, I will provide an opportunity for union and employee input into all contracting decisions. These decisions should be made in an open forum that provides all stakeholders the opportunity to present their analysis of the quality and cost estimates that will inform the ultimate decisions. Moreover, unions and employees should be permitted to offer their own bids in competitive bidding processes. I will make sure that they have the opportunity to do just that.

Go back to where Senator Obama stands on the issues

John McCain:

Despite attempts to contact John McCain, AFGE never received a questionnaire back from him. Therefore, AFGE has used his voting record to give you a better understanding where he stands on this issue.

• Senator McCain opposed an amendment to the FY 2007 Department of Defense Appropriations Bill that would have prevented the privatization of 350 federal employee jobs at Walter Reed Army Medical Center which contributed to the scandalous treatment of veterans at Walter Reed. (Senate Vote 234, 9/6/2006)
• Senator McCain voted for Bush’s plan to privatize and outsource hundreds of thousands of federal jobs.  He voted for unfair rules favoring contractors over government workers and even voted to allow contracting of government employees working on the front lines of the war on terror. (Senate Vote 408, 10/23/2003; Senate Vote 168, 9/8/2004)
• Senator McCain voted for a base realignment and closure (BRAC) process that would have allowed privatization-in-place without letting federal employees compete for their own jobs. (Senate Vote 286, 9/25/2001)
• Senator McCain has consistently supported President Bush’s discredited scheme to privatize Social Security.  The Senator backs a plan to divert Social Security payroll taxes to fund private accounts which would prevent America from fulfilling its promise to seniors, survivors and the disabled. John McCain also supports reducing the growth in Social Security benefits and would consider raising the retirement age to 68. ( Senate Vote 49, 3/15/05; Senate Vote 68, 3/16/06; Wall Street Journal, March 3, 2008)
• Senator McCain opposed an amendment that would have prevented the Department of Veterans Affairs from privatizing jobs, many held by blue collar veterans, without first giving the workers a chance to compete. (Senate Vote 315, 9/6/2007)

To read more about Senator McCain’s voting history click here.

Go back to where Senator McCain stands on the issues