New weapon in outsourcing fight

Thumbnail image for Yvonne_Walker_small.jpgAB 740 holds agencies accountable for illegal private vendor contracts

AB 740, the Local 1000-sponsored outsourcing bill went into effect Jan. 1, and stands to be a powerful tool in our fight to prevent wasteful spending on private contractors.

After a strong push by Local 1000--which included members lobbying legislators and nearly 5,000 emails sent to lawmakers--the bill passed in both houses of the legislature and was signed into law by Gov. Jerry Brown on Oct. 9.

AB 740 requires state agencies to be accountable and change their business practices after the State Personnel Board (SPB) rules that a private vendor contract is illegal.

"Future contract challenges will be more effective because of AB 740," said Local 1000 President Yvonne R. Walker. "We will be more successful at protecting state jobs while preventing needless spending of tax dollars."
80 percent success rate

Local 1000 has challenged more than 100 state vendor contracts since 2006--winning approximately 80 percent of the time. In many cases, these victories led directly to state workers being hired to perform work previously handled by private contractors who often worked at a higher cost. This includes two veterans homes where 70 food service employees were hired last year after a successful challenge.

On Feb. 21, the legislature is scheduled to hold a public hearing on outsourcing during which Local 1000 will present evidence of private contracts that
are more expensive than hiring state workers.

Challenges ahead

Despite victories, it is still a struggle to stop outsourcing. Last month, the SPB ruled in favor of a Local 1000 challenge to a contract at the California Science Center in Los Angeles over maintenance services for the center's buildings and grounds. The SPB decision said science center management had offered no proof that it was cheaper to hire contractors and had apparently made no serious effort to hire qualified state workers.

Even though Local 1000 won the challenge, the science center has refused to hire more state employees. Instead, management has sent out State Restriction of Appointments (SROA) notices to 21 custodians with the aim of laying off seven of them.

Hire employees, not contractors

Local 1000 is fighting the proposed layoffs on multiple fronts, but the science center case shows how hard it can be to win against entrenched administrators who prefer to hire contractors instead of state employees.

"We really need our members on the front lines to step up and help us identify contracts that need to be challenged," said Marie Harder, a Department of Public Health employee who has trained fellow members to research private vendor contracts as part of Local 1000's outsourcing task force. "These are tough cases, but we are thorough and persistent. We usually win--and it's worth it to protect state jobs and save taxpayer dollars for vital programs."