Defending universally-accessible quality public services:

1. Defending universally-accessible quality public services: • a central challenge for municipal workers unions • La defensa de los servicios publicos de calidad para todos: • un desafio central para los sindicatos de empleados municipales • Jorge R. Mancillas • Health and Municipal Services Officer • Responsable de salud y municipales • Oslo, Norway • 26 November, 2008

2. Public services improved quality and length of life • For the last 100 years, unions and political organizations of workers • Fought for and improved key determinants of health: • Better incomes & better living and working conditions • Fought for public services: health, water, sanitation, education... • Result: Improvements in Life Expectancy and quality of life

3. EXPANSION OF PRIVATE SECTOR DOMINANCE EXPANSION DEL DOMINIO POR EL SECTOR PRIVADO 1975 2002 IMF index - Indice del FMI “Economic freedom” available to private companies “Libertad economica” ejercida por empresas GRIS no datos o NO PS - Sector privado 1 = Weak PS - Sector privado debil 7 = Strong PS - Sector privado fuerte

4. Political & economic transitions Military coups Fall USSR Financial tools Lending>debt crisis Tax cuts Budget deficits

5. 1970s Political & economic transitions 1970s coups chile Military coups Financial tools Lending>debt crisis Tax cuts Budget deficits

6. 1980s political & economic transitions 1980s US UK ThatcherReagan Financial tools Lending>debt crisis Tax cuts Budget deficits

7. 1990s political & economic transitions 1990s Fall USSR Financial tools Lending>debt crisis Tax cuts Budget deficits

8. 2000s political & economic transitions 2000s Fall USSR Financial tools Lending>debt crisis Tax cuts Budget deficits

9. Progression of reforms Pressure on Public services DEVELOPED Tax cuts Budget deficits DEVELOPING Structural adjustment reforms Plus military coups or war > weak states Reduced public spending Staff cuts – service cuts Public services deteriorate Decentralization Privatization by stealth: Outsourcing & Contracting out Public-private partnerships Private financing initiatives Direct privatization Sale or issue of shares in public Company (telecom, utilities) Increased private sector dominance of economy

10. Impact on workers 1. Loss of public sector jobs 2. Worsening of employment conditions: • Increase in short-term, part-time employment • Lower wages • Loss of benefits 3. Worsening of working conditions: • Larger workloads • Greater workplace hazards

11. Consequences of commercialization • Public services: • basic rights commodities for sale • 1. Decreased access to public services • 2. Generalized deterioration in quality of services • 3. Increases in costs • 4. Reduced democratic accountability • Access to and quality of public services received • depend on economic status, increasing inequalities

12. INCREASE IN INEQUALITY Survey of 59 countries Source: World Bank staff calculations

13. Global economic crisis: challenges and opportunities • OPPORTUNITY: Push for growth of public sector • The crisis exposes the structural flaws of the private sector, its limitations and failures. • Opportunity to explain private sector limitations and offer alternatives • b) Public investment in publicly owned services and infrastructure to promote growth in a way that ensures public accountability and pursuit of social goals CHALLENGE: The crisis puts public services at further risk Renewed push to cut public services due to resources devoted to financial rescue and decreased revenues due to reduced tax base Argument that crisis broke because “structural reforms” were not complete

14. Goals of this meeting ANALYSIS: 1) Develop an updated global picture of the policies and strategies being used to promote privatization, the form they take in each sub-region, and the forces behind them. STRATEGY: 2) Share experiences (positive and negative) with the host of strategies that unions have pursued to deal with the many aspects of privatization. 3) Identify concrete steps we can pursue nationally, regionally and globally to better respond to the challenge of privatization/marketization of municipal services. 4) Develop teams and networks to better organize effective responses and to advance in the achievement of quality municipal services.

15. Plan for this meeting: • Develop a clear picture of trends and actors • a) Outcomes of 30 years experience - Warner • Factors influencing decisions on private or public • b) Forces behind privatization - Hall • GROUP DISCUSSION: identify targets for our efforts & means to influence them • 2. Develop a picture of successful union strategies • a) Political actions - Sternatz • b) Alliances with communities/users of services - Tokumo • c) Union alternatives for reform of Municipal services - Butcher • GROUP DISCUSSION: identify universal elements of successful strategies The WIN strategy: example of a systematic approach • 3. Global activities and how we organize to pursue them • GROUP DISCUSSION: specific global targets and activities to impact them • development of teams and networks

16. 100 years of difference PSI Founded by 17 44,000 members 20 million members Delegates 6 countries 161 countries

17. Dr. Jorge R. Mancillas Jorge.mancillas@world-psi.org (+33) 450 40 11 50