The number that adopted measures to overcome employee opposition and smooth the transition to privatization increased during the previous five years. Philadelphia provides an excellent example of the kinds of measures that can be taken to minimize job displacement effects. The city created new job classifications and established a Redeployment Office to match the skills of displaced employees to position openings in other departments. It also gave displaced employees preferential consideration for other city jobs, and required private contractors to give first right of refusal to affected city workers. In one case, the city invited displaced prison food service workers to participate in special training for newly created correctional officer trainee jobs.
Layoffs are a very real concern to public employees when the issue of privatization is raised.
However, there is little evidence to suggest that privatization results in massive layoffs and hardship for public employees. As recent research demonstrates, the trends in government are, in fact, just the opposite. Few governments report widespread layoffs due to privatization. Most governments that enter into privatization agreements require that contractors hire the existing workforce and reduce the number of employees only through attrition or cause. All rights reserved.