October 1, 2013


Outsourcing America: Sodexo Food Service Contractor Siphons Cash From Kids and Soldiers. With about $8.8 billion in annual revenues from operations in North America, Sodexo is a primary driver of the privatization and outsourcing of food services in America. But Sodexo has taken the low road to profitability. Sodexo “Rebate” Scheme Ensures Race to the Bottom in Suppliers In 2010, Sodexo was caught fomenting a race to the bottom in food service, by choosing food suppliers based not on quality but based on which supplier could give them the highest cash rebate for the contract. This iced out small local famers and other quality food suppliers in favor of big agriculture and big business that could best engage in the kickback scheme. Truth-Out

The charter school mistake – oped. ‘Reforming’ schools by giving tax money to corporations is a distraction from the system’s real problems — poverty and racial segregation. Los Angeles Times

MI: White House Lays Out $300 Million Public-Private Plan For Detroit. Officials in Michigan and Washington, D.C., have agreed that there will be no bailout for the bankrupt city of Detroit. But on Friday the Obama administration will roll out a $300 million plan combining federal, state, and private funds to tear down blighted real estate and repair city infrastructure. ThinkProgress

CA: Bill to Control Job Outsourcing by California Courts Hits Gov’s Desk. A bill on Gov. Jerry Brown’s desk would restrict courts’ ability to outsource jobs to contractors, after a fierce lobbying battle between judges saying the bill crosses the line into their turf and union reps arguing that the judiciary should follow the same rules as the rest of California government. The bill, AB 556, says courts can hire private contractors only it can be demonstrated that the switch would save money, among other conditions. Courthouse News Service

IL: Deal to privatize Port of Chicago falls through. Negotiations to privatize the poorly run and foundering Port of Chicago by handing over management to a Denver company have fallen through, according to the transportation company that intended to take it over. Chicago Tribune

IL: Grounding Midway privatization was right: Now make transparency the law – opinion…. Now the mayor and City Council should make transparency and accountability the law of the land. Fortunately, giving current and future taxpayers this peace of mind is not difficult. Public and private management experts have laid out a common set of best practices when considering whether to outsource.   Crain’s Chicago Business

PA: Protesters say visiting philanthropists want to defund public schools. ABOUT 20 PROTESTERS chanted outside a North Philadelphia charter school yesterday afternoon, claiming a group of visiting philanthropists were “deciding what education looks like in America, not the parents, not the students.”  Philly.com

LA: LSU Hospital now University Health. LSU Hospital in Shreveport will become the second largest health system employer in Shreveport-Bossier City after privatization. Shreveport Times