Contracting Out

By M. L. "Sonny" Bozeman

The figures just don't add up!

The City says that the cost of these benefits is about 50% of their wages - This comes to about $36,000.00 per employee, ($72,000.00) for both. This $72,000.00 is less than half the figure Mr. Taboada states. Lets say that the cleaning expenses is $10,000.00 and that will equal $82,000.00. Then there is the overhead - Now the overhead would have to be about $68,000.00 a year. $68,000.00 a year for overhead, hum. The overhead expense is attributed to our two janitors whether they do the work or it is contracted out.

Here is something I really don't understand - When the cost of a private contractor is calculated, this expense (the overhead) is not included nor are certain direct costs associated with contracting out like city attorney, purchasing department service and the cost of monitoring the work.

Where are the savings? There isn't any.

There are hidden costs of contracting out. There is the cost to the city and the taxpayer of families existing on poverty level wages. Make no mistake, these contractors can bid low because they pay - at best - minimum wage, and offer no benefits, not even sick time.

A minimum wage worker at full time would qualify for public assistance, food stamps, public health care and assisted housing and social services, which costs the taxpayer.

The only spokespersons for this position who have appeared before the council on the issue are the representatives of the Chamber of Commerce.

Excerpts in this statement are fro Laura Joseph of the Citizen News in the July-August 1999 issue.