Whether bosses call it “streamlining” or “reorganization,” the changes usually mean that workers will lose their jobs, their pay, their rights and their voice. Not this time. AFSCME is supporting SF 2874, a bill authored by Sen. Larry Pogemiller (DFL-Minneapolis) to reorganize state services related to business and employment. AFSCME members will have a key role in the process and the outcome. Council 5 Director Eliot Seide told legislators that workers will embrace change if they have job security and if certain principles are met.

AFSCME’s principles for successful reorganization:

1. Give workers job security and they will embrace change.
    
2. Drive fear from the workplace by guaranteeing that every worker will have a job with equal or greater pay and benefits after reorganization. If that job is a different job that requires new skills, the employer will provide the training that the worker needs.
    
3. Move more resources to the point of service.
    
4. Flatten organizational hierarchy; i.e., fewer managers, more frontline workers.
    
5. Involve frontline workers in identifying ways to cut costs and improve efficiency and service delivery.
    
6. Realize that upfront investment is required to achieve long-term efficiency.

Sen. Pogemiller drafted his bill with AFSCME’s principles in mind.

His bill requires an employee participation committee and also reduces the number of deputy commissioners, assistant commissioners and certain unclassified positions.

The bill abolishes the Department of Employment and Economic Development and the Department of Labor and Industry. It also abolishes the Department of Commerce duties related to the financial exam and market assurance divisions. The bill protects the rights of affected employees under the terms of their contracts. It also requires the employer to bargain with the union regarding the job security of our members.

The bill also requires an economic feasibility study for contracts of over $100,000 for all state agencies. This process is known as the Taxpayer Accountability Act and it would require state agencies to do a state employee cost comparison before entering into privatization contracts.

The Department of Transportation is already required to comply with the act. Here’s an example of how it works. State workers stripe roads for about 8-cents a stripe; private vendors charge 31-cents. The law prevents outsourcing of work that we can do better, faster and cheaper.

If the bill becomes law, an agency couldn’t contract out unless it determines that:

• The cost of the contract is lower than state employees completing the work;
   
• The quality of the contracted work is equal to or exceeds the quality of services that could by provided by state employees;
   
• The contract does not violate public employee protection or otherwise reduce the full-time equivalent positions within the department; and
   
• The proposed contract is in the public interest.