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Privatization
In the event the State seriously considers privatization
of a facility or function which would result in the layoff
or displacement of bargaining unit employees, the State
agrees to give the union reasonable advance notice, but
not less than 120 days prior to awarding a privatization
contract to perform the work. Accompanying the
notice will be a detailed accounting of all costs under
the privatization and a comprehensive cost analysis.
The parties shall mutually select an independent outside
auditor to determine whether substantial cost savings will
occur if the privatization occurs.
Where the independent auditor determines there is no
substantial cost savings, the state will undertake its
best efforts to ensure there shall be no layoff or adverse
economic impact on state employees.
Where there is substantial cost savings, and the State
chooses to privatize, the State agrees to use the
displaced worker pool in order to lessen the impact of
such layoff.
If there is a pending or proposed general layoff, the
State shall review existing private contracts for work
similar to that of the employees considered for layoff or
dislocation. Unless a cost analysis shows
substantial cost savings for those existing private
contracts, the State will use its best efforts to bring
the work performed under private contract(s) back in house
and the State shall use the displaced worker pool to keep
workers employed while the State determines whether to
bring such work back in house.
Effective July 1, 2003, when privatization is undertaken
as a substantial cost savings, the State Auditor or a
mutually selected independent outside auditor will conduct
periodic post audit cost analysis to determine whether or
not there continues to be substantial cost savings.
Where there is not substantial cost savings, the State
shall make its best efforts to bring the work back in
house.
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National Association of State Highway
and Transportation Unions
455 Capitol Mall, Suite 501
Sacramento, CA 95814
Phone: 916-446-0584| Fax: 916-446-0489
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©2002 NASHTU.
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