More City Leaders Talking Trash, Privatization to Tackle Massive Deficits

COMMENTARY | The Chicago Sun-Times reported that at least 22,000 unused blue recycling carts were stashed away in a Far South Side warehouse. These carts, purchased by city hall at a cost of $1 million to Chicago taxpayers, were procured to make the citywide switch to new recycling mandates but the money ran out one-third of the way through the upgrade. Now Chicago wants to dump the expensive union contract and privatize the program to save money.

Needless to say, Ecology Center's Laborers Union Local 1001, whose members stand to lose their jobs to a private contractor, are not happy with this idea.

In November 2010, in an effort to reduce a projected deficit of $654 million, the Chicago City Council approved Mayor Richard M. Daley's balanced 2011 budget. The new budget plan, while maintaining basic city services and improving neighborhood safety, seeks to streamline existing government programs and limit new spending. Most important, the new budget plan would help grow Chicago's economy and create new jobs for its residents.

"We had projected a City deficit of over $654 million for next year, a direct result of the worst national recession in seventy years," Daley said in 2010. "To date, this recession has caused us to lose more than $1 billion in revenue."

However, in his effort to balance the budget, Daley was determined it would not be done upon the backs of tax-paying residents. "I do not believe it is right to raise taxes with the economy as bad as it is," Daley said. In keeping with his promise, Daley's plan does not raise any tax, fee or fine, including property taxes.

Brackenbox, supplier of giant dumpsters known as "roll-off boxes," is expected to get at least one zone contract. Although a Chicago official said earlier this month that the contracts were still being evaluated, according to the Sun-Times, Laborers Union Local 1001 Business Manager Lou Phillips is concerned that opening bids to private contractors like Brakenbox will allow them to get ahead of a union-backed ordinance designed to keep the work in-house. It would require a two-thirds vote by the city council before assets are sold and city services are privatized.

Chicago isn't the only city to consider trashing Ecology Center Union contracts.

The Ecology Center also currently holds a contract to operate the curbside recycling program for metals, glass, paper, and similar items for Berkeley, Calif. In an effort to reduce its bloated budget, Berkeley's city council members are also opting for privatization of curbside recycling services. Ecology Center's Union members in California are also unhappy.

"What we're really talking about are people, jobs, and their families", Martin Bourque, executive director of the Ecology Center, told the council, according to the Berkeley Daily Planet. Ending the Ecology Center contract would "cost 35 union jobs," he said. "We're exceptionally surprised to find ourselves on the chopping block."

As an interesting note, the Board of Directors of Ecology Center must have been equally "exceptionally surprised" to find that the Industrial Workers of the World were also seeking to have a few management heads rolling. But I digress.

In May 2010, the City Council of Berkeley authorized the hiring of a management consulting firm to conduct a comprehensive analysis of the city's Solid Waste Management Division (SWMD) to assist its efforts to reduce the deficit City's Refuse Fund. In July, the city council approved the contract with Sloan Vazquez for those services. On March 8, Sloan Vazquez delivered its report to the city council.

The report noted that Berkeley has already cut spending in the Refuse Fund by eliminating three Saturday curbside recycling pick-ups, which the unions operated as a costly sixth day of overtime service. Ecology Center Union leaders say that stipulation would cause a "public service disaster" that would generate "massive amounts" of homeowner complaints. So far, no complaints have been filed by residents regarding the level of service.

In addition to savings adjustments to residential pick-up schedules, commercial accounts were reduced from a 5-day to a 2-day per-week collection. With fewer pick up days and by using fewer trucks to pick up for more accounts, overtime expenses were even further reduced.

In late March, under pressure to deliver suburban-style curbside recycling to the 359,000 Chicago households without it, former Mayor Richard Daley chose Waste Management -- rather than Ecology Center and Laborers Union Local 1001 -- to provide the service in four of six designated zones.

The two remaining zones would go to Metal Management and Brackenbox, the suppliers of giant dumpsters used to replace hired union trucks. However, the contract was subsequently put on hold after Local 1001 exercised its right to submit a competing bid. That bid came in $20,000 a month higher than the $596,000 monthly fee proposed by the private contractors.

The final decision now rests on the shoulders of new Chicago Mayor Rahm Emanuel, who has declined to take a position on the issue. An arbitrator is expected to rule on the contract decisions next week.

In cities all across America, citizens are struggling to survive the economic mess. In response to their suffering, local governments are trying to cut back on spending to ease the burden on their already cash-strapped taxpayers. Where former Mayor Daley refused to balance the budget on the backs of Chicago taxpayers, Laborers Union Local 1001 Business Manager Phillips proposes another plan. To create the revenue necessary to cover Ecology Center's expensive contract, Phillips suggests sticking all 600,000 Chicago households with an additional $10 per month recycling fee .

"A $10 user fee is gonna be cheap two years from now," Phillips said. "They don't have money to pay my members overtime or holidays, but they can bring companies in to do recycling. It's a kick in the ass to the people of Chicago and to my members. These are the guys who stood up and took comp time and furlough days. Now they're giving our work away."

The Declaration of Independence guarantees every American the inalienable rights of "life, liberty and the pursuit of happiness." Somewhere along the way, union members have somehow come to believe it is the responsibility of American taxpayers to hand it to them at our expense.

The hubris is shameful.

Sources:

Fran Spielman, "Privatizing recycling will cost city, hurt minority contractors: union", Chicago Sun Times

City of Chicago Budget Ordinance

"City Council Approves Mayor Daley's Balanced 2011 Budget Which Controls Spending, Continues Services and Provides For Future", City of Chicago

Fran Speilman, "City privatizing recycling: union", Chicago Sun Times/Southtown Star

Steven Finacom, " Hundreds Attend Berkeley Council Workshop on Controversial Recycling Proposal ", The Berkeley Daily Planet

"Open Letter to Ecology Center Board of Directors from the Bay Area IWW", Industrial Workers of the World

"Solid Waste Recycling Assessment Report", Sloan Vazquez

Fran Spielman, "City to privatize recycling; deliver curb-side service to households", Chicago Sun Times