PSAC-UNDE report reveals failure of privatization within the Department of National Defence

HALIFAX, NS, October 29, 2020 – In order to shine a light on the impacts of privatization of civilian work within the Department of National Defence (DND), the Public Service Alliance of Canada (PSAC) and the Union of National Defence Employees (UNDE) released a comprehensive report, In the interest of safety and security: The case for ending the privatization of Department of National Defence services.

It has been decades since privatization made its way into several sensitive sectors of DND and since then few areas of civilian work have been safe from increasing privatization. Cleaning, lawn care, administration, IT, firefighting, helicopter maintenance, and many more roles have been contracted out to the private sector.

The report uncovers disturbing details about real impacts on our military bases and the culture of secrecy surrounding the details of contracts signed between the Government of Canada and the mega-corporations involved.

Key findings:

• In its 2018-2019 budget, DND invested nearly $4 billion of public money in contracts with private companies.
• Every full-time job created in the federal public sector contributes to the creation of 1.91 jobs.
• Each dollar spent by the public sector adds $1.77 in economic benefits to the national economy and raises the GDP by $1.22.
• Specifically to the Atlantic region, the approximate value of cleaning services-related contracts awarded in the region total up to $18.18 million of public money in contracts with private companies.
• Evidence that privatization saves money is sorely lacking and in fact, substantial evidence indicates that contracting out is costing DND more.

This is a snapshot of some of the contracts for civilian work across the Atlantic region on September 2:

Besides a call on the government to stop privatization, cancel all plans for further contracting out and bring work back into the public service, PSAC and UNDE conclude the report with six additional recommendations. These focus on current practices, legislative obligations relative to employment equity, and issues with operational funding. Among them is the need to revise the Access to Information Act to remove competitive advantage exemptions for information involving private firms.

PSAC and UNDE also launched a national campaign (uncoverthecost.ca) to raise awareness on the subject.

Colleen Coffey, Executive Vice-President, PSAC Atlantic Region

“For decades, governments have attempted to cut corners by contracting out public service work to mega-corporations whose only interest is profit. This report shows that not only does privatization not save money, it provides poor quality service, sometimes with dangerous results. It’s time to turn this around, stop contracting out and start investing in public services and our local communities.”

June Winger, UNDE National President

“Civilian workers with DND pride themselves on providing consistent, high quality service to Canada’s military. Contracting out has resulted in a degradation of service standards, wasted money and potential compromises to our mission readiness.”

Links
Report – In the interest of safety and security: The case for ending the privatization of Department of National Defence services
Media kit: https://drive.google.com/drive/folders/1qfCRfE5MVFfcXXzurLPdFozwsnU98Qs4
Web site: https://uncoverthecost.ca/

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For information:
Sébastien Bezeau, Regional Political Communications Officer
902.240.2222 | bezeaus@psac-afpc.com