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(c) 2010-2024 Jon L Gelman, All Rights Reserved.

Sunday, August 8, 2010

Outsourcing is the New Carve Out for Government

The economic consequences of the Depression of 2007 is causing a huge drop in governmental employment and a rebound of that job market is not anticipated in the foreseeable future. In order to save payroll costs, including the expense of workers’ compensation benefits, governmental entities are looking to privatization to avoid expenses. A pattern of furloughing staff, laying off employees and eventually outsourcing work, is the present trend.  This pattern mirrors the original workers’ compensation carve out provisions utilized to lower costs originated by Bechtel and other large employers.