Atlanta entered into a 20-year contract in 1998 with a private firm to operate and maintain its drinking water system. Milwaukee , in March 1998, entered a ten-year contract for operation of its wastewater treatment facilities. The history of labor relations with private operators of publicly owned drinking water and wastewater facilities is remarkably good. This is evidenced by experiences in Milwaukee and Indianapolis. More dramatically, in Indianapolis the number of grievances filed fell from 39 in 1993, the last year of public operation, to a total of just two over the following five years.
Total compensation tends to be higher.
Increased Emphasis on Worker Training and Safety. In cities that have hired private firms for operations and maintenance of their drinking and wastewater systems, workers have enjoyed increased training and safety. In Indianapolis, workers have been offered tuition reimbursement and safety training. If private operators do not lay-off employees and compensate them better than in the public sector, it is reasonable to ask how they can save ratepayers money or earn a profit for their investors. A large, international firm that operates many wastewater and drinking water systems creates economies of scale along two dimensions.