Privatization encourages a race to the bottom
A friend of mine has worked for this hospital in an ancillary department for 16 years. He invested in the 401k and was fully vested in that. He was as top pay. Had decent benefits.
Then, the hospital privatized that service. He had to reapply for his job. Had to buy new uniforms. The only jobs available were part-time 35 hour a week jobs so he wasn't eligible for insurance. However, at a significant cost, he was "allowed" to keep a COBRA policy for a time period. He rolled his 401k into the new plan--of which he isn't fully vested. Now, exactly WHO did that benefit?
The new company. They got an experienced employee in a down job market for nothing. So THEY get to pocket the profits.
I know this happens everyday but people just don't realize the full extent of what privatization does until it happens to them.
If there was one message I wish we could get out, it would be to stop any privatization of a municipal or necessary service.
It does NOT lower rates for the consumer, which is often how it is sold to voters when it is a municipal entity.
The consumers pay the same rate. The employees get shafted and the new company slurps up ALL of the profits.
It is a way to funnel money out of the working class.
My heart is broken for my friend and his other coworkers.
Privatization is an evil act perpetrated by the rich to keep from paying decent, hardworking Americans what they are worth.
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