James Parrish - Creative Commons al of of al n Po The The Tragedy of of Tragedy The Published InternationalandtheTransnational by Public Services Institute by Hilary Wainwright t e t i t h t e Priva e h e Public e Transnational Institute t e Contents Preface 3

Introduction 4

Chapter 1 - A stark indictment of market-led politics 10

Chapter 2 - Building blocks for the future 16

Chapter 3 - When the architects of the welfare state try to demolish it 24

Chapter 4 - New foundations for an economics of public benefit 34

Chapter 5 - Building coalitions 38

Conclusion: Unfinished business 44 Preface t is my pleasure to present this booklet to all union activists. Our collaboration with author Hilary IWainwright has allowed her to take an insider look into some of the most powerful campaigns that public sector unions have been a part of in the past few decades.

This booklet should be used by all activists who are responsible for developing union strategy, mobilising members, and building new power structures, both in the workplace and in the community. The examples that Hilary cites are but a few of the growing number of dynamic, innovative and powerful campaigns in which our unions participate.

From my own experience in Italy, I can attest to the power of alliances between trade unions and community actors. I also believe, from the perspective of a trade union leader, that we require new ways of thinking, new ways of talking, and new ways of organising and mobilising.

Trade unions are legally obligated to negotiate collective bargaining agreements with the employer and to PSI Public Services International leader Rosa Pavanelli: “We require new ways of thinking, new ways of defend against any violations. This is the bedrock of talking, and new ways of mobilising.” trade union work. However, as this booklet shows, public services unions which build alliances in their communities are better able to defend the rights and interests of their members. It is only when labour rights are understood to be part of the vital spectrum of human rights that we can begin to understand the imperative of joining forces.

As the leader of the global trade union federation Public Services International, representing 20 million public service workers around the world, I am committed to working with our unions to share their insights and experiences, build their strength in their workplaces and communities, and project the power of people united into the decision-making arenas.

We understand that in this era of globalisation, we must work together across our communities to develop our societies based on the principles of justice and equity, and on the foundation of quality public services.

In solidarity, Rosa Pavanelli General Secretary, Public Services International, 2014

The Tragedy of the Private The Potential of the Public 3 Introduction This booklet is about how public service workers, These and many, many more everyday with their fellow community members, are not calamities lie behind our reference in the title to only defending public services but also struggling the ‘tragedy of the private’. We use this phrase to make them democratic and responsive to to highlight the fundamentally inappropriate people’s needs and desires. It is also about how application of the logic of private business, based these alliances are working at different levels – on maximising profits, to the management of local, national and international. shared resources, natural and social, and the We are publishing this booklet at a time when meeting of social needs. The phrase turns on its the privatisation of public services and utilities head ‘the tragedy of the commons’, which was has been tried and failed. There is widespread an attack on the idea that people can effectively criticism of privatisation. It is now leading to an manage common resources together for shared increasing number of decisions, mainly at a local benefit, if they have suitable conditions. The level, to bring services back under public control. tragedy of the anti-commons, and in particular The failure of privatisation has led to notorious of the private, arises from the presumption that scandals. Since the days of Margaret Thatcher, people act only in their immediate self-interest Britain has been a laboratory for privatisation (rather than taking account of mutual benefit and and has witnessed some of the worst cases. Most interdependence) and do not communicate, let recently there was the case of multinational alone collaborate, over shared problems. corporation G4S promising thousands of staff for ‘The potential of the public’, by contrast, starts the London 2012 Olympics who simply failed to from exactly that awareness of mutual dependence, show up. Before that there was Serco, a company and an ethics of stewardship, mutual care and that has built itself on the back of privatisation, collaboration that arises from it. All of these are being caught leaving National Health Service evident in the struggles to defend public services out-of-hours emergency cover dangerously reported in this booklet, indeed they are often understaffed, and then admitting falsifying being re‑introduced in the process of struggle. data to hide the failure. An IT contractor, Atos, The problem remains of how – through what provides tick-box tests that are used to declare forms of organisation – we can achieve this disabled people ‘fit for work’ and take away their potential. The instinct behind producing this benefits – and continues to do so even though booklet is that the answer lies in experimentation some have subsequently died. and learning from practical attempts to create solutions. Charles Hope Since the days of Margaret Thatcher, Britain has been a laboratory for privatisation.

4 The Tragedy of the Private The Potential of the Public The rise of insourcing EaudeParis By bringing its water system back into public hands, the city of Paris has realised greater financial returns and efficiencies in service delivery to residents.

Across the world, municipal were bringing services back from and lower prices. councils are deciding to bring the private sector. The reasons In Germany, there has been services back under their council managers gave included a major expansion in the direct control: in the USA for example, ensuring that quality of service public ownership of utilities in the traditionally the stronghold of was the priority, and achieving last few years, away from a small pro-private market ideology, a greater efficiency savings from a group of multinational firms study found that a fifth of all public value standpoint – and for who dominate the energy, water previously outsourced services these savings to be invested back and waste sector. By 2011, the have been brought back in-house. into service improvement rather majority of energy distribution The research found that primary than distributed as dividends to networks had returned to public reasons for ‘insourcing’ were a private investors or bonuses to ownership. Many German failure to maintain service quality chief executives. public authorities are bringing by the outsourced contractor In continental Europe the services such as waste disposal, (73%) and a failure to achieve trend is the same. In 2010, public transport, water, social cost savings (51%). Nationally, politicians and public managers care and social housing back President Barack Obama’s decided to remunicipalise Paris’ in-house, not only to give better administration is also looking water service. Under private value for money but to help at insourcing key services. management, too much money meet important social and Obama declared that in many was being siphoned away from environmental objectives. Similar government agencies outsourcing the public budget as profit. trends are evident in Finland, has gone too far and has eroded ‘Remunicipalisation’ has meant the Netherlands, Norway and these agencies’ core capacity to more control and oversight Belgium. And in Italy in 2011, manage contractors effectively. from the elected authority and 96% of the public voted in a In the UK, over half of 140 representatives of water users, referendum to keep their water local councils surveyed in 2011 leading to improved water quality services public (see Chapter 3).

The Tragedy of the Private The Potential of the Public 5 A moment of opportunity

For all those who share the values is grounded in an understanding international institutions that and vision of those who built of the distinct concept of ‘public continue to drive outsourcing the welfare state, these trends value’ – the meeting of social and impose it on an increasingly of returning to public delivery needs – as the central criteria disaffected public? And how can of public services indicate that for efficiency in the management this pragmatic rejection of the we are in a unique moment of of public services. This turning private market in the sphere of opportunity. point is drawn from their public goods become a source of Over the past 30 years, since everyday experience of the energy and creativity, sparking Margaret Thatcher and Ronald failure of services delivered by a process of improving and Reagan gained office, it is clear private business. expanding public services to meet that the problems the welfare How can we strengthen this the new needs and desires that state was designed to alleviate – pragmatic – and still modest – have emerged in recent decades? hunger, disease, unemployment, turn away from privatisation, These are the questions which poor living conditions – have to challenge the national and this booklet seeks to answer. thrived once again, as these dogmatically pro-market politicians drove the destruction of the model. In the case of too much of the Global South, their ideology contributed to blocking Bennett Peter attempts to build public services where they are most needed. It is now clear that public service managers and local politicians, those taking decisions on the front line of public services, are in practice rejecting the claims of private business and their political champions. They are asserting pragmatically an understanding of ‘efficiency’ that is based on a different logic from that of private commercial accounting. Instead it A toilet in a township in South Africa, where 1.5 million still live without proper flushing toilets.

Coalitions for public services

The champions of quality public local coalitions of public service importance of coalitions with services in response to the social workers, managers and users communities and the challenge disasters of privatisation have pushed back privatisation and of winning over public support often been new political actors became a source of innovation nationally and internationally to – not politicians, but coalitions and renewal in the quality of local the fore. in which those who depend service provision. A general lesson to be drawn on public services for a decent This booklet is intended to be is the need for resistance to quality of life (public service a resource summarising lessons take place at many levels: the users) ally with public service to be learnt from those who have workplace and the locality, the workers. In Uruguay, Brazil and successfully built such coalitions, national, and the more opaque Italy, for example, such coalitions as well as those who have tried level of challenging unelected at a national level – with but are facing difficulties from and secretive international international support – effectively which we must also learn. We bodies such as the World Trade defended and helped to improve have focused especially on lessons Organisation, the International the public management of water. for public service workers and Monetary Fund and increasingly In Norway, the UK and Germany, their unions, but always with the the European Union.

6 The Tragedy of the Private The Potential of the Public The local workplace of international bodies and force a significance of SU ‑dominated particular services is where process of reversal. At national international bodies as decisions made at other levels level, politicians’ free market institutions through which free are actually implemented – and dogma has driven attempts to market ideology, especially as where strong resistance and destroy public institutions, and personified in the governments convincing alternatives from coalitions of resistance have had of Reagan and Bush, has driven, those directly affected can block to build up a powerful counter- spread and reinforced the process the imposition of privatisation hegemony in order to win. But of privatisation. by national governments or it is important not to ignore the Municipal Services Project Berliner Energietisch organised a referendum initiative to remunicipalise the electricity grid and create a public, democratic energy utility in Berlin, Germany. See more at www.municipalservicesproject.org/blog

Pulling the strings

This helps explain why and how of democratic rituals – the national legislative bodies – and neoliberal political parties have US in particular has used its sometimes imposed as conditions in a matter of a decade been able power in international bodies of loans or in the context of to destroy many popular public to impose privatisation as part threatened or implied financial institutions that had been built of the international neoliberal sanctions, from withdrawal of US up and embedded in national regulatory regime. aid to investment strikes by US life over many decades. In other Sometimes this regulatory companies. It is often reinforced words, behind the scenes of regime is backed by law, or rather through more subtle means, co- elected legislatures – which treaties between government opting and pressuring leading have increasingly degenerated representatives – rarely politicians and experts who might into stages for the performance debated, let alone agreed by otherwise be critical.

The Tragedy of the Private The Potential of the Public 7 Yet the neoliberal regulatory state of public services nearly two importance of being alert to the regime has also been challenged, decades after the end of apartheid different levels at which the drive from the point when, in 1999 at is a notably damning indictment to privatise operates and the ways the meeting of the World Trade of the failure of neoliberal in which resistance is vulnerable Organisation in Seattle, the US economic policies and the tragic if it cannot shift the balance of tried to build what has been emptiness of the promise that forces in its favour at every level. termed ‘a global constitution’ with economic success would ‘trickle The international pressures the WTO at its centre. The ‘alter- down’ to improve the lives of the on the new post-apartheid South globalisation’ movement was the mass of people. Africa not to break from the result: a movement that had local, Secondly, the struggle to neoliberal global regime were national and global presence and dismantle the apartheid-era decisive, though highly opaque. in many ways helped to spread public services and replace them The considerable forces for a collective confidence at each with democratic, universally democratic reconstruction of level, that there are alternatives, accessible services is an society were not fully ready for and hence there is nothing exceptionally stark illustration this and so were vulnerable in the natural about the supposedly of the challenge to defend public face of Washington’s efforts. unchallengeable constraints of services with practical policies the global market. The challenge for improvement through now is to build, on the basis of democratisation. lessons learned and victories Post-apartheid, the status gained locally and nationally, quo was clearly not an option. an entirely different regulatory The argument of this booklet regime which protects public is that it rarely is. Public sector services and enables democracy- trade unions frequently met this led reform. challenge, but the difficulties and This booklet starts with a defeats they endured points to the chapter on South Africa, for a third reason why South Africa number of reasons. Firstly, the is a touchstone: it illustrates the Washington State Labor Council, AFL-CIO Labor Council, State Washington Trade unions and environmental movements challenged US attempts to build a global neoliberal regulatory regime through the World Trade Organisation in Seattle in 1999, and continue to do so wherever unfair free trade deals are being negotiated today.

8 The Tragedy of the Private The Potential of the Public Making links with communities

The starting point of the efforts taking over, but about linking doing on a world scale. These we report of democracy-led up, making alliances and finding corporations co-ordinate and plan transformation and improvement ways to work together, combining internationally – our resistance of public services is the know- different sources of power. and alternatives need to have the how and creativity of both public The other side of pushing for same global scope. service workers and those who democracy‑driven transformation Out of the highly effective use the services. Such knowledge is the building of democracy in transnational struggles is often embedded in public the internal running of the public against water privatisation has service workers’ commitment to sector. This booklet explores emerged the innovative idea of their work and to the satisfaction examples of this including the public-public or public-civil of service users themselves – and experience of the UNISON partnerships, through which the the users will often, of course, branch in Newcastle, UK and the public and civil organisations include the workers themselves Model Municipality Project in managing public services and their families and friends. Norway. collaborate across national The way to harness this Newcastle was a public‑led boundaries to share expertise, know‑how and creativity process of public service collaborate in finding funding, is through strengthening transformation, where the and generally strengthen democracy, and it is this union branch successfully the power of public and civil that makes the process of stopped outsourcing and then institutions in managing public democratisation essential to negotiated with management services and utilities. This public- public efficiency. We could call to implement an in-house public/public-civil model is it ‘productive democracy’. The alternative to privatisation. It becoming an increasingly central participatory forms of democracy up-ended the usual top-down institutional tool in the struggle described in this booklet are in hierarchy of the public sector against privatisation and for high practice about creating sources to truly involve workers and quality public management. (This of power which exploit the citizens in identifying ways in is discussed in more depth on vulnerabilities of the drivers of which the council’s IT service page 35.) marketisation (for example the could be improved – including All the case studies in this remoteness of politicians from making savings that could be booklet illustrate the creative the daily life, needs and anxieties reallocated to front line services capacities that are developed of the population) and at the such as caring for elderly people through co-operation and same time mobilise the capacities and improving services for young solidarity, autonomously from of workers and communities people. both the markets and the positively to transform public Norway saw a similar but more political system. They provide services for the benefit of all. formalised process. Public service practical evidence that there is As far as building this kind workers were put in the driver’s an alternative to the neoliberal of productive democracy by seat, given the chance to make economics that is causing reaching out to create coalitions the changes they wanted to public despair and waste and destroying with service users is concerned, services. This meant supporting democracy across the world – and this booklet describes how trade what they called ‘change guides’ it is an alternative being built unions have deployed their getting time off from their jobs to right now. resources to make effective work on setting out new ways to This booklet is a work in links with communities. An improve the services, submitting progress: a working document example of this we look at is proposals ‘from below’ to a group to which we’d like readers to the South African Municipal of managers, politicians and continue to contribute. Workers’ Union (SAMWU) Cape workers’ representatives who Town Metro branch setting up could implement them. a network of stewards to reach Finally, this booklet looks at out to community groups where the importance of international they live. A key part of working co-operation. Campaigns Please email this way is unions seeing that the against water privatisation [email protected] community is often taking action illustrate the importance of with any feedback and examples from on a problem before the union research and active collective your own experience. even recognises it – campaigning monitoring and tracking of is not about parachuting in and what water multinationals are

The Tragedy of the Private The Potential of the Public 9 Chapter 1 Post-apartheid South Africa: A stark indictment of market-led politics

‘We knew apartheid was a deeply rooted system, we knew it would be difficult, we knew it would take time – but we did not think it would take forever. Eighteen years. Eighteen years. And we are still living like this.’

‘This’, for Lennox Bonile, is a cramped sitting room, bedroom and cupboard of a kitchen in the Khayelitsha area of Cape Town,

with a bucket instead of a toilet Julian Rademeyer and no running water in the Municipal workers collect and empty bucket toilets in Ezenzeleni township in the eastern Free State province town of Warden. house. Lennox is a shop steward in the South African Municipal people (almost all black or most unequal societies in the Workers’ Union (SAMWU) at coloured) still lived without world. the local city council. He and proper flushing toilets. 1.7 The statistics are shocking. his wife Priscilla have graduated million still live in shacks, with The bottom 20 per cent inS outh from a plain bucket toilet system no proper beds, kitchens or Africa get less than 3 percent of to ‘bucket plus’. That means they washing facilities. the total income, while the top 10 have a ‘porta-toilet’ to empty their While there has been a very per cent of earners get more than bucket into, and that toilet is itself small narrowing of the gap 50 percent. This is a wider gap emptied each week. (The task is between black and white people, than in Mexico or Brazil – wider done by casual workers working as the result of a small minority even than the gap between the for a labour broker contracted by of black people moving up the poor and the oligarchs in Russia. the city council.) income ladder, there has been a Almost a third of South Eighteen years after the widening of the gulf between rich Africa’s population still live mass of black South Africans and poor – and the majority of on less than $2 a day. Child lined the streets to vote in the the poor are black. South Africa, malnutrition is now higher first government of the African as the World Bank reported in than even under apartheid, as is National Congress, 1.5 million July 2012, remains one of the unemployment.

10 The Tragedy of the Private The Potential of the Public Broken promises

‘There Shall be Houses, Security international economic supporters: public service workers and Comfort!’ ‘There Shall be institutions. and users whose knowledge and Work and Security!’ ‘The People Across the world, every commitment could, with political Shall Share in the Country’s public service, from national support and leadership, have been Wealth!’ These were the promises water or transport systems to the driver of democratic public of the Freedom Charter, the the local post office, has been service change and improvement. document that inspired and threatened with privatisation, In spite of the readiness of most united the struggle against broken up and sold off or turned public service unions in the apartheid – and was cited as into a corporate‑dominated country to play this positive role, prosecution evidence in the public-private partnership as a South Africa was no exception. Treason Trial that led to Nelson consequence of economic policies The ANC government chose Mandela’s imprisonment. But driven by corporate interests marketisation and privatisation as over two decades after Mandela rather than public needs. the main means of reconfiguring walked free, they are promises In the process, public service the apartheid state, codified in the that have not been fulfilled. ‘It workers become defined as a government’s 1996 programme, is disturbing, an affront to our ‘cost’ to be cut. In opening up the Growth, Employment and dignity and respect,’ says Lennox public services to profit-seeking Redistribution (GEAR) Strategy. Bonile, frowning at why these companies, governments have Despite its name, GEAR made should be his circumstances and blocked the necessary resource explicit the ANC government’s those of millions like him. for improvement and change in commitment to the private sector The enormity of the injustice the public sector: the knowledge as the driver of economic growth, that was supposed to have and ethical commitment of those to opening up capital markets, been conquered with the end who actually provide and use reducing state expenditure and of apartheid, and the extreme public services. introducing privatisation. social consequences of a market Free market orthodoxy GEAR was announced as ‘non- unleashed and facilitated rather was initially championed by negotiable’ by the government than re-regulated and constrained evangelical right-wingers such as after a run on the rand in the first by a state based on majority Margaret Thatcher and Ronald few months of 1996. It effectively rule, has made South Africa a Reagan, but it spread rapidly replaced the more democratic, particularly stark indictment across the political spectrum, popular transformation blueprint of the market-led politics that including – all too often – to known as the Reconstruction has become the orthodoxy of parties of labour. These parties, and Development Programme, the dominant economic powers by acquiescing in the global which was drawn up with the and hence the regulatory regime pro-market regime, effectively participation of both workers and implemented by US‑dominated turned their back on their own communities. The democratic alternative

This process played out across both as citizens and with fellow attention or find a political voice. the world. In South Africa, the citizens, have refused to give up The purpose of this booklet, ANC welcomed Biwater, Suez and on either their achievements so therefore, is to draw attention to other multinational corporations far or on the continued struggle examples of how public service to make profits from water, land, for social and economic rights. As trade unions, together with minerals and other common trade unionists, and in alliance movements of the people who use goods, and to manage public with communities, they are the these services, have campaigned services on the principles of ones now effectively taking the to defend public services but also private business. Similarly, parties collective responsibility for the to ensure that services are of the of labour on every continent have quality of public services which highest quality. At the same time, looked to the private market as in the past they handed over to that fight also means workers the main means of public service political parties. Their variety of struggling for the rights, security, ‘reform’. ‘public service reform’ is not for tools and resources they need to But this was not the end of the profit, but by and for the people. truly serve the people. matter. Public service workers Rarely, however, does this across the world, organising grassroots struggle gain public

The Tragedy of the Private The Potential of the Public 11 The resistance

Lennox Bonile is one of many programme creates temporary These same roots among hundreds of shop stewards jobs to do environmental work in impoverished service users have campaigning, along with communities. ‘You get a job for been central to SAMWU’s role community groups, to build a few months, then it ends and in leading the on-the-ground up local government’s capacity you get no more,’ he says. ‘Pay is struggle against corruption to provide the services that poverty level and they work under and for political accountability. he knows from his own daily appalling conditions, without ‘Communities come to us. There experiences in Khayelitsha are safety clothing, even when they is no other voice they trust,’ said desperately needed. are working in the sewerage.’ Jacob Modimoeng, provincial Workers for municipal Bonile’s task is to explain secretary of SAMWU. He government like Bonile have SAMWU’s arguments to local was speaking the week after a seen the possibilities for building organisations in Khayelitsha. 4,000-member strong protest quality public services eroded The outcome is an effective in Katone, where the mayor by the casualisation of public combination of the moral and drives the latest Mercedes service work, through the media impact of community Benz while municipal workers introduction of labour brokers protests – many communities are have no transport to get to the or schemes based on temporary in an almost permanent state of communities they are trying to work, like the Expanded Public readiness to protest – and trade serve. Works Programme (EPWP). This union negotiation. SAMWU High levels of trade union and community mobilisation attempt to stop corruption as South Africa‘s public services are increasingly put out to ‘tenderpreneurs’.

SAMWU’s stand against corruption

Katone is one of the small towns Increasingly, all those across the a month salary of the platinum near Rustenburg in South Africa’s world who watched Mandela walk driller and the 45 million rand rich mining area. Marikana, free from jail, imagining that the a year income of those who scene of the 2012 police killing of sufferings of the mass of black manage the mines became one striking miners, lies nearby. South Africans would soon be of the dynamite facts that has Many South Africans say over, are starting to ask questions. driven escalating wage demands – Marikana was a wake-up call. The gulf between the 4,000 rand including in other unions such as

12 The Tragedy of the Private The Potential of the Public S AMWU – making 12,500 rand a month effectively the going rate for a living wage. SAMWU’s provincial organisation in the North West is leading a parallel struggle of public service workers and local communities, many of whom work or have family members or friends in the platinum mines. They want to claim what is their right in terms of public money for public services. Rustenburg is one of the richest municipalities of the North West province. It receives considerable revenue for the bulk water and electricity that the mines depend on. If Rustenburg was carrying out its municipal responsibilities, this revenue from the mining companies should be paying for water, electricity, SAMWU sanitation and roads in Marikana Labour union protests against road tolls in South Africa, including a one day general strike, led ministers to rescind local tolls. and Katone and the small settlements that surround them. In reality, people in these areas bribes. ‘The mayor, Matthew campaign to bring Moss Phakoe’s are surviving without proper Wolmarans, approached them and murderers to trial is symbolic roads, with holes in the ground said “I’ll give you one million”,’ of the determination, mutual rather than proper sanitation says Jacob, ‘but these guys were solidarity and organising capacity and electricity as occasional as soldiers of the revolution…’ of citizens, whether as betrayed a birthday treat rather than an The seriousness of the service users or responsible public everyday right. attempts to clamp down on service workers, to pursue the Some of the reasons for whistleblowers became clear democratic and social rights that this became clear to SAMWU when an ANC councillor and they and their families believed members, many of whom either active trade unionist, Moss they had through the overthrow lived in or tried to serve these Phakoe, was shot dead as he of apartheid. impoverished areas. ‘Members left his house for work on 9 SAMWU sees corruption kept coming to the office with March 2009, two days after not as a distinct ‘single issue’. similar problems,’ remembers he had handed over a dossier Rather it understands it as the Jacob Modimoeng. ‘The sense on corruption that implicated direct product of letting the profit was growing that the community mayor Wolmarans and a business motive come to dominate public [resources] were being embezzled. associate. services. It exposes the rotten Municipal money was being It was only in July 2012, core of neoliberal politics – and misdirected.’ after a long fight for justice, that it could enable those who truly The difficulties the union Wolmarans was jailed for 20 years stand for people’s public services was up against in acting on this for masterminding the murder to cut through and clear the information became clear as of Phakoe. (Though he has since way to build democratic public shop stewards found themselves been given leave to appeal.) provision. threatened. Jacob describes This is just one story. It is how ‘our shop stewards became symbolic though of the endemic targets. They told us they and nature of corruption – a product their families received death of the ‘tenderisation’ of public threats. Unknown faces hung services, and of the extent to around them. Life became which public office is being miserable.’ Some, on the other abused to pursue private gains. hand, were approached with By the same token, however, the

The Tragedy of the Private The Potential of the Public 13 A democracy-driven alternative to water privatisation

Let us focus on another democratic constitution. In this legacy of apartheid. campaign SAMWU has been it was joined by several other One exemplary initiative over centrally involved in. To solve unions, most notably transport a two-year period beginning the problems and grasp the union SATAWU, which faced the in 1996 was in the Hillstar opportunities of dismantling the privatisation of the railways and area of Cape Town, involving South African apartheid state, the ports. three townships. Their water SAMWU mobilised the skills In 1997, after a national departments were separate and commitment of its members campaign of demonstrations and the inequalities of service to develop a public, democracy- and extensive public argument, delivery under apartheid had driven capacity for restructuring SAMWU won agreement with meant that water for residents public services, without the employers’ South Africa in the townships was not piped privatisation, to meet the needs of Local Government Association into houses but had to be fetched, all. At the same time, it has had (SALGA) on a protocol for how usually by the women walking to resist the ANC government’s restructuring would take place. around 15 miles to taps served by drive to privatise. Several other The key commitment, as far as leaking pipes. unions in the COSATU federation the unions were concerned, was The union brought together pursued the same strategy of what that the public sector would be staff and managers across we could call ‘transformative the preferred option. townships to integrate the resistance’. The union, although fragmented water department and SAMWU’s post-apartheid recognising the inadequacy of equalise the service up, to provide strategy was to pursue a double the public sector being defined piped water for all. Management track of ‘stopping the privatisation as merely a ‘preferred option,’ and unions shared a belief that of municipal services (in whatever made the most of the space this the integration could be best form)’, and ‘contributing to the legal agreement provided for achieved through mobilising transformation of the municipal municipal workers and managers public and community capacities. services to allow for effective, to develop alternatives with a The knowledge of the community accountable and equitable service chance of implementation. At of where the pipes and valves delivery’. every level its members initiated were located was essential to the In other words, the union plans for public reconstruction, process of repair and upgrading. engaged with restructuring big and small – from union Alf Moll, the senior engineer, with the aim of demonstrating members mending water pipes explained, ‘One of the aims of the public sector’s capacity to for their own communities in the Hillstar meetings was to reorganise state services on their own time to working with demonstrate that there was an in- the basis of the social rights sympathetic municipal managers house capability to tackle service enshrined in South Africa’s on overcoming the institutional delivery.’ Lance Veotte, the leading SAMWU official involved, adds, ‘We believed that once there was proper public integration of the municipal administration, there would be no return. It was a way of preventing outsourcing – we all believed that outsourcing would perpetuate the separation, and inequalities.’ SAMWU’s belief was put to the test during the Hillstar process when Cape Town council employed consultants to investigate options for management of the water supply. They were funded by a government grant intended for pilots on public-private PSI partnerships. After pressure from Well-organised public service workers are often a strong antidote to corruption in management. unions and water management,

14 The Tragedy of the Private The Potential of the Public the council agreed that the First, as the consultants for investigation should include Cape Town council implied, all options. In the end, the finance became a problem. consultants recommended that An aspect of the neoliberal the council keep the management framework of the ANC of water services in-house. government’s macro-economics The result was a real was that, from 1994, it was improvement in the imposing tight restrictions on infrastructure so that after municipal finances, depriving one year water was piped to municipalities early on of the people’s homes – and the resources they needed to expand poor received the 50 litres of and restructure their services to free water per person per day meet the needs of the neglected that the ANC had originally black communities. Take promised in the Reconstruction Johannesburg. Between 1991 and and Development Programme 1999, the finance department of 1994. Graham Reid, Cape had cut the central-local grants Town’s senior superintendent of by 85% (after inflation).O n the water distribution, commented: ground, municipalities under this ‘Council came up with the idea to kind of financial pressure turned privatise in the first place because to privatisation. they saw that the water services Furthermore, in 1996, as if to of the area were in disarray. We consolidate and generalise this

then started the Hillstar process ad hoc privatisation, the minister Tribune Chicago Velasquez, Phil and because of its success on the of local government announced Stephanie Hayes of Ashe Elementary School reacts to the ground, the idea of privatisation the Municipal Infrastructure successful conclusion of the Chicago Teachers Union strike in was shelved – they saw it was Investment Framework (MIIF) – September 2012. possible to deliver services in- prepared on the basis of advice house.’ The consultants did add, from the World Bank. At first, however, that if additional finance SAMWU resisted on a branch Lance Veotte, the SAMWU was to be necessary, privatisation by branch basis, on the Hillstar officer who was the guiding might have to be considered in model, with the national union’s spirit behind attempts to the long run. full support; but with MIIF, develop alternatives in water Why was it not possible SAMWU shifted to a higher management and delivery, to generalise the Hillstar gear. ‘A key element of MIIF summed up the asymmetry built experience, with its key elements was proposals for public-private into these institutions: ‘Instead of the combined commitment partnerships, so we had to of capacitating municipalities of union and front line public address the issue of privatisation to deliver services better, these managers to in-house capabilities, systematically,’ remembers bodies are hell-bent on ensuring the active involvement of the SAMWU’s general secretary at private sector involvement in community, industrial pressure the time, Roger Ronnie. basic services like delivery in and constructive solutions from A further problem was that water, sanitation and refuse the unions? Certainly SAMWU, the unions were effectively removal.’ Efforts to develop the among others, tried to use the alone up against well-resourced Hillstar model demonstrated that experience as a template for multinationals like Biwater and SAMWU could not then carry other larger-scale attempts to Suez. Not only did the ANC through plans for reconstruction reconstruct water services, as government establish a fiscal on its own, in the face of the well as making it central to framework which made local combined forces of water its education programme for government highly vulnerable to multinationals like Biwater, the shop stewards. Major attempts the pressure of these corporations, government, and teams of US/ at union and community-led it also directed all development World Bank trained consultants. reconstruction, however, came support towards these private In the next chapter we will up against the wider context companies. This could be seen in look at how struggles over water of the political party that led the operations of the Municipal in Brazil, Uruguay and Italy have the struggle against apartheid Infrastructure Investment Unit, addressed some of these wider becoming the same political party and the Development Bank of structural obstacles – and begun driving through privatisation. Southern Africa. to overcome them.

The Tragedy of the Private The Potential of the Public 15 Chapter 2 Alternatives to privatisation: Building blocks for the future

This chapter looks at three major struggles to an interest in the sustainable management of the defend water as a public good and to improve shared resource. But all victories in an economy the quality of its delivery. Water is emblematic which remains dominated by the restless and of mutual dependence on a shared resource, a predatory capitalist market are precarious. In all commons. In the struggle against concerted and these cases, the struggle against privatisation and continuing efforts to privatise it, water workers commercialisation of public services continues. At in alliances with other citizens have shown how the end of each story, therefore, is a summary of unions can become an effective custodian of the lessons learned for the future. commons working with others who use and have

1. Brazil: Full mobilisation for public water

In Brazil, the story of labour’s union Federação Nacional dos the government and, together transformative resistance to Urbanitários (FNU), an affiliate with workers and others in the privatisation starts in 1996, with of the CUT union federation. He alliance, in plans for improving the attempt of the 1995–2003 explains: ‘It became necessary the management and delivery of Cardoso government to require to expand the struggle beyond municipal water companies. This state governments to sell off the unions and make society as a made these public companies less their state sanitation company whole aware of the importance of vulnerable to the pressures to and to move responsibility for defending such essential services privatise. the management of water from a – in other words, to become the Several public water and municipal to a regional level. Citizens’ Union.’ sanitation companies themselves This was part of a wider joined the FNSA, including the process of reorganising public A powerful alliance departments of municipal water water companies to make and sanitation in Porto Alegre them more attractive to private This approach led the union and Santo Andre, near São Paulo. investors. The move to regional to reach out to all those with a Both these cities were then under responsibility would have shared commitment to the public the leadership of the Partido dos meant the break-up of the well- management of sanitation and Trabalhadores (PT, or Workers’ established public companies in water as a public good and basic Party), which had pioneered many municipalities where the human right. The result was the participatory budget-making political left was relatively strong. founding of the Frente Nacional and public management more From the mid-1990s, this had pelo Saneamento Ambiental generally. already meant large-scale layoffs (FNSA) in 1997. With 17 co- The FNU and CUT provided – but resistance had so far been founding organisations, it was a organisational resources for the restricted to the isolated struggles powerful alliance of consumer FNSA, including the executive of particular groups of workers. organisations, NGOs involved in secretary. Logistical help was As preparations to privatise urban reform, public managers, also provided by the Federação public companies accelerated, ‘the the church and social movements. de Órgãos para Assistência Social workers began to confront “the Especially important was the e Educacional (FASE), a radical war” more politically’, reports participation of ASSEMAE, the Brazil-wide NGO with a long Abelardo de Oliveira Filho, then organisation of water managers. history of popular education, sanitation and environment It played a key role both in the campaigning and research with secretary of the urban workers’ technical arguments against popular movements.

16 The Tragedy of the Private The Potential of the Public Felipe Tavares - Creative commons - Creative Tavares Felipe Street slogan: water is for everyone.

The combination of such core social, religious and secular. Deputies with speakers from sources of support indicates the The FNSA’s framework of South Africa, Canada, and global broad base of the alliance. It chose principles, ‘for the universal union federation Public Services its name, ‘National Front’, to guarantee of sanitation and water International. This documented indicate that it was not dominated services to all citizens regardless the social and environmental costs by any one social group, whether of their economic and social of the corporations leading the it be trade union, NGO, faith condition’, acted as the basis for a process of privatisation in Brazil organisation or social movement. massive process of participation. and elsewhere – and showcased Each constituent organisation alternative models of public Experience in organising worked to develop proposals and improvement. ‘International help strategies to resolve the still dire and exchange has been essential A particular contribution of the state of water supply in Brazil, to in our struggle,’ affirmed Abelardo trade unions was to provide well- overcome endemic corruption, de Oliveira Filho. organised and informed networks and to come up with coherent By 2000, this multi-level of politically conscious activists, alternatives to privatisation. It campaign had successfully experienced in organising in their sought to generalise and apply challenged the constitutional communities, right across Brazil’s the principles of participatory legitimacy of shifting hugely differing regions. democracy developed in practice responsibility for the management CUT had been a central by the Brazilian left. of water from the municipal organising force in the struggle This participatory process to the regional level, and had against the dictatorship less than was combined with strategic defeated the government’s 15 years earlier. It had established and high-profile interventions proposal for the sale of the a strong legitimacy as a hub for in the parliamentary and National Sanitation Company. the coordination of different judicial process. Interventions After Lula’s election in 2002, autonomous movements with in the federal capital Brasilia, the success of the campaign was shared goals. for example, would always be symbolised by de Oliveira Filho’s For example, in 1983 CUT had accompanied by mass activities, appointment as minister of water. created ANAMPOS (Articulação demonstrations, or other high- The proposal for wholesale Nacional dos Movimentos impact events. privatisation was dropped. Populares e Sindicais) as a means However, this was not a perfect of coordinating social movements International support victory. The government did and trade unions when the need later bow to demands from arose. In the struggle against the The international dimension to international capital to enable dictatorship, just over a decade the campaign contributed to these public-private partnerships before the struggles over water high-profile interventions. At a in public services, including privatisation, a culture of mutual key moment in the government’s water. Several municipalities respect (although not without attempt to get its privatisation also submitted to pressures tensions) was nurtured among proposals passed, the FNSA from Brazilian companies for different kinds of movements – organised a well-publicised privatisation of their water urban and rural, industrial and seminar in the Chamber of services.

The Tragedy of the Private The Potential of the Public 17 hh Essential to the success of the campaign was the hh This brings us to a further feature of this unions’ ability to create sustained relationships, or campaign: the importance of strategies and ‘deep coalitions’, with service users and citizens forms of organisation to challenge the power more generally, rather than merely tactical of capital beyond the workplace and in the and instrumental alliances. These alliances and new circumstances of the globalisation of the d relationships had a dual purpose. On the one capitalist market. The water unions in Brazil r hand, they brought together sources of expertise were part of wider class and popular alliances. a – practical, expert, investigative – that were vital They did not depend on the Workers’ Party to w to transforming the service and its quality. The address the wider political issues, though they r local and regional assemblies that developed did draw sections of the party into the process. o

f alternatives illustrate this process of building up The ambitious initiatives of the FNSA to mobilise ‘counter-knowledge’. popular power over the political process were

ry ry calculated to counter their governments’ willing h r h A strategically vital dimension of these alliances submission to the pressures of the international was international collaboration. Whether through financial institutions. ca Public Services International or through direct cross-border collaboration, it led to a sharing hh It’s worth highlighting the relative autonomy o

t of information and strategic understanding of the FNSA from political parties, including the

s otherwise not available on a national basis. On Workers’ Party, which many members probably the other hand, the success of these alliances in voted for. It built up autonomy of perspective and

o countering the pressures of global corporate and knowledge as well as organisation, underpinned financial power depended on their ability to use by the independent resources and institutional s a variety of sources of power and influence to capacity of the unions. On the basis of this

Le s n win legitimacy and build political support for the independence, there can be strategic relationships public option. with political parties – at least in theory. In practice, relations with political parties have been complex and uneven, depending, for example, on the timing of the electoral cycle.

2. Uruguay: The trade union backbone of a popular movement

In Uruguay, the story began in privatisation in the Maldonado 2002 with a newspaper leaking a region. letter of intent between the 2000– FFOSE is part of the trade 2005 government of Jorge Batlle union federation PIT-CNT which, and the International Monetary like the Brazilian CUT, played a Fund (IMF), which set out a key role in supporting resistance timetable for the privatisation to the dictatorship (between 1973 of Uruguay’s national water and 1985) and thus has a high company, OSE. degree of popular legitimacy. The The publication of this water workers had been part of letter led to the formation of a that resistance too. The struggle popular and effective alliance for water as a human right and a – the Comisión Nacional en common good was widely seen Defensa del Agua y de la Vida as a continuation of the struggle (‘Commission for the defence for democracy, and the union of water as a source of life’), or continued to play a central role. CNDAV. It had its roots in an Union organiser Carmen Sosa alliance involving the water described the union as providing workers’ union, the Federation of the ‘spinal column’ of the State Employees of OSE (FFOSE), CNDAV. to resist initial moves towards Joint union public water campaign brochure.

18 The Tragedy of the Private The Potential of the Public The horseback campaign

In the capital Montevideo, NGOs and urban movements played a major role in CNDAV. They tried out every way of reaching people: going to schools and universities was very important, not only as a way of educating young people on water issues but also ‘we knew they would go home and talk to their parents,’ explains Adriana. Outside the city it was mainly FFOSE, working with rural organisations, which led the campaign. Carmen Sosa describes how ‘in 2004, the general secretary of FFOSE (with PSI other compañeros) went round In Uruguay, the Federation of State Employees of OSE (FFOSE) has resisted privatisation in the Maldonado region. the country on horseback for 23 days, from village to village, to talk to people about the need for Strong connection with water that outflanked the existing constitutional reform’. government. A previous success The union also used its Like the water workers in Brazil, against privatisation provided membership of Public Services the union’s initial concern was a solution. In 1992, 72 per cent International to organise the interests of its members as of the electorate voted against a international support. This jobs were frozen and workload law that would have opened up included research and arguments increased – but union members’ virtually all state enterprises to – drawing especially on the concerns soon went beyond their privatisation. CNDAV followed international experience of jobs. As staff of the national water this example and made the most privatisation – that the union company, which from the late of a clause in the constitution used to build support in the 1990s had been threatened with enabling citizens to call for a successful referendum. break-up and privatisation, they referendum if they could win The other side of the union’s also felt a strong connection with the support of at least 300,000 commitment to water as a the farmers and rural population people (more than 10 per cent of common good and its delivery whose livelihoods were dependent registered voters). as a public service has been on the supply of water. The referendum would be over its concern to make OSE an ‘For us’, explained Adriana an amendment to the constitution organisation that is properly Marquisio, president of FFOSE to include a reference to access accountable for public money. between 2004 and 2010, ‘the to water and sanitation as ‘Not only do we defend public problem of water shortage in rural ‘constituting fundamental human water as a right’, declares Adriana, areas is very sensitive. There are rights’ and to such a public good ‘but we also work for the best staff of the public water company being provided ‘solely and directly efficiency of water management. in even the smallest rural towns. by state legal persons’. Within The health of the population is in They grew up there, they live a year, they had gathered the our hands.’ there, and they are part of the 300,000 signatures they needed. One threat to public efficiency affected population. Water is too Their task was undoubtedly in OSE has been corruption. vital for the task of providing it helped by the long tradition Union members played a leading to be carried out as just any other and culture of public service in role in 2002 in ridding the job.’ Uruguay. But they knew that company of corruption and The union and its partners culture had to be activated. participating with management in CNDAV believed that the People had to be alerted that in its transformation into a model strongest institutional defence something they had taken for public utility. An important against the IMF would be granted as naturally common element of this model was a a constitutional one. They was under threat of private formal requirement, after the had to find a political route appropriation. success of the referendum,

The Tragedy of the Private The Potential of the Public 19 work with them to establish such national and international’. partnerships with public water Relations with the union are companies across Latin America: pivotal. ‘Every week,’ stresses including DMAE in Porto Adriana, ‘there is a day, an Alegre, Brazil; AAPOS in Potosi, institutional space, for working Northern Bolivia; and Sedacusco with the unions.’ And in many in Cusco, Peru. ways it is the unions that are An example from the the driving force of this process, co‑operation with AAPOS including in the companies – for illustrates the practical meaning example in DMAE, where the of ‘partnership’, that rather union pushes the management to slippery term. Potosi is so high be involved. above sea level that, until recently, It’s not always easy though. there was at least one small There are bursts of activity in a village that was not able to receive collaboration and then it can fade running water. OSE and FFOSE away. ‘The most difficult problem made a visit to understand the is that leaderships often change problem. An OSE engineer went and the co-operation stops,’ over and spent some time there sighs Adriana. Still, this is an Libertinus investigating, free of charge important and innovative process Uruguayan campaign for public water. beyond his travel, and drew up a which is still putting down roots. note on what needed to be done. It is a process that their office of The promotion of these public- co-operation is also spreading to that citizens and staff have an public relationships, always other parts of the public sector effective role in the running of the involving the water workers’ in Uruguay, such as housing. company. The process of making union as well as the public Adriana says, ‘We help them build this a reality is still under way, company, is a high priority for co-operation with other public but the level of citizen and NGO FFOSE. Adriana is proud to bodies to exchange ideas, skills participation in CNDAV has report that there is now an office and expertise and maybe initiate prepared the ground. ‘Citizens in OSE devoted to developing joint projects.’ insisted on it,’ remembers Maria these partnerships – the ‘office Selva Ortiz from local Friends of of co-operation and solidarity, the Earth affiliate REDES, ‘and as a result of the role citizens played in the campaign, we could not be refused.’

Public-public partnerships

A further and developing dimension of this ideal of a model public utility is a strong emphasis on co-operation with other public water companies, to find the best solutions to problems, to share technical and other kind of expertise and to support each other. Central to this is the process of creating ‘public-public partnerships’, an alternative to public-private partnerships which create networks of mutual support without necessarily involving any exchange of money. FFOSE has been a pioneer in PSI this strategy, persuading OSE to PSI unions demand that the UN Human Right to Clean Water and Sanitation be implemented through public services.

20 The Tragedy of the Private The Potential of the Public PSI Street mural in Uruguay calling for public water systems to be protected from privatisation.

hh The campaign shows the hh A second key feature of the hh As with all these experiences importance of reinforcing campaign is the importance of no victory is secure and the and giving voice to the water workers taking a special contracting of casual, low latent popular commitment responsibility as custodians of paid workers from private to the natural commons, this commons. Here, FFOSE’s companies is a growing of which water is the most role in creating CNDAV and problem. FFOSE is resisting

d everyday symbol. Global actively mobilising for it – and has achieved some

r corporations, and the political not only among workers success. But it is a reminder

a bodies which clear their path, but using its resources and that the union and CNDAV

w assume public opinion to be leadership to reach out to need to keep on educating,

r weak and passive. A key to farming communities – sets an explaining and campaigning

o the success of CNDAV was example. around the importance of f the way that it turned this water as a common good, hh CNDAV recognised that the contempt for the people into needing to be managed with

ry ry logic of defending water a decisive weakness for the skill, care and commitment. At r as a common good, and government and the IMF. It the same time, the union has protecting it as such through

ca did so by explicitly naming won the passing of a law to the constitution, was that and celebrating water as a protect the rights of informal o its management must be

t commons, re-awakening workers, which discourages democratic and transparent.

s people’s assumption that the company from using It further understood that it was theirs by right and them as a ‘cheap option’ and entrenchment of the right to

o therefore was not for sale. This encourages more regular jobs water in the constitution was ran through the character being created. s necessary but not sufficient. of the campaign, from the Real democracy requires Le s n very title of the coalition, the effective participation ‘Commission for the defence of citizens and workers in of water as a source of life’, the running of the public to all its efforts to reach and company, to ensure that it mobilise those conscious of is in practice managed as a their dependence on water. commons, available to all.

The Tragedy of the Private The Potential of the Public 21 3. Italy: ‘write water but read democracy’

mainstream Italian television) not to put out any news about the referendum. Behind this success is the story of a new kind of multi- centred, molecular campaign, bringing together all kinds of social actors. It co-ordinated horizontally and rotated responsibilities, developing over the years a diffuse leadership through which capacities were spread. It used virtual means of communication as well as extensive popular mobilisation in the streets, marketplaces and cultural centres. These methods overtook and then overwhelmed the mainstream media.

Marco Menu Marco In some respects the A demonstration in Rome for a ‘Yes’ vote in the referendum to keep public water in public hands - 95% of voters agreed. achievement was similar to that in Uruguay with the emphasis on popular mobilisation, a referendum and so on, though It’s not just in Latin America resistance to it, were ready for political parties did not play that struggles over water have this. From the late 1990s, they the same visibly and actively been important. In 2009, the had been coming together engaged role in Italy that the Berlusconi government in Italy from different localities and Frente Amplio did in Uruguay. passed legislation requiring movements to prepare a public The organising committee was municipal public water operators campaign. made up exclusively of civic to embark on privatisation. One organisations, both local and of the laws on water privatisation A million signatures for water national. All members were able stated that private companies to bring their own strengths, and that wished to participate in Their immediate response was to join together at local, regional or public water services could do form a Forum for National Water national level. so with ‘equal treatment and no Movements and organise for The Italian public service discrimination’ and they were the million signatures that were workers’ union Federazione encouraged to buy up to 70% of needed to force a referendum on Lavoratori Funzione Pubblica (FP- any listed public water company. keeping water public. In the end CGIL) was active at all levels of A second law stated that 1.4 million people signed – more the coalition. Political left parties, the price of water services than any previous referendum on the other hand, gave rise to a would be decided on the basis petition – rallied by the goal of parallel supporting committee. of a guaranteed 7% return on keeping water as il bene comune, a ‘The many identities and the investment. This meant that the common good. The next hurdle to different cultural roots of the private water companies could overcome before the referendum subjects – both individuals and then charge as much as they would have legal effect was to collectives – coming together wanted to guarantee a higher achieve a turnout of over 50 per along the way generated a new profit and further their view cent of the electorate. This was common identity,’ comments of water as an economic good successfully done – there was a Tommaso Fattori. instead of a common good. But 56 percent turnout, with 94 per activists determined to defend cent of these voters voting ‘si’ to water as a commons, having keeping water public. This in a watched the international water context where Berlusconi directed grab and the already successful his media outlets (meaning most

22 The Tragedy of the Private The Potential of the Public The struggle continues defeated on a purely national The battles in Italy will go on; basis. The Italians have therefore there is much to do in the water But the battle is far from over. added their energies and skills sector. The water movement Even though the majority of to campaigning to collect one will now focus on returning Italian citizens voted against million signatures to pressure to public control those public the privatisation of water in the European Union governments utilities which were partly or referendum, the technocratic to implement the new Human wholly privatised. Defending and government of Mario Monti later Right to Water and Sanitation democratising public services tried to include water among the agreed by the United Nations. – ‘commonifing’ them rather public services to be privatised This European Citizens’ Initiative than commodifying them, as under austerity policies. – launched by the European Tommaso Fattori has put it (see The Italian water movement public service union federation ‘Further Reading’) – is never a reacted promptly, mobilising EPSU – has three main goals: matter of a single struggle. One people and lobbying parliament. guarantee access to water for success will always need to be Some regions also brought a case all, convince the European followed up by new campaigns. to Italy’s constitutional court, Commission to adopt a rights- which in July 2012 ruled against based approach with water attempts by the government services provided through the to bypass the results of the public sector, and make universal referendum. However, that looks access to water and sanitation unlikely to be the end of the part of EU development policy. matter. ‘We foresee many more If the campaign draws on and years of fighting ahead,’ said Rosa spreads the methods of the Pavanelli, president of FP-CGIL. Italian campaign, there is a strong ‘There is still the obsession to chance of success. privatise water.’ After all, water privatisation is part of the continued neoliberal drive to bring every previously public, uncommodified activity into the market – it cannot be

d hh Taking place relatively soon hh The campaign proved hh Water is proving a cornerstone

r after the defeat of Italy’s the importance of paying on which to rebuild the a historic popular mobilisation attention to the means of broadest possible horizon of

w against the US/UK wars organising as well as to the democracy and commons. It r against Iraq and Afghanistan, ends. Essential to the success is becoming a battering ram

o the first lesson of the of the movement was that it against the overall system of f referendum was the actual organised in a multi-centred, global privatisation. However, possibility of change: it meant horizontally co-ordinated victories against privatisation ry ry

r that grassroots collective way, based on valuing the are always precarious; political action had been plurality of knowledge, movements can never pack

ca restored. The movement encouraging direct and up and go home. On the

o turned the government’s personal participation in contrary, they need to extend t

miscalculation of the decision-making and favouring their scope to surround

s consciousness of the people, a rotation of responsibilities the sprawling, octopoid and its attempt to ensure and a diffuse leadership. character of corporate and

o an ‘anorexic democracy’, as neoliberal power. Tommaso Fattori put it, into a s fatal weakness. Le s n

The Tragedy of the Private The Potential of the Public 23 Chapter 3 Europe: When the architects of the welfare state try to demolish it

Staying for a while longer in Europe: this is where and high-interest credit is expanded to allow for the institutions of the welfare state were first personal consumption on the market while health established, built on the principles of a social and education are cut. wage – that is, state provision to meet the social Here the touchstone is Greece. It illustrates needs of everyone on a universal basis. Now it starkly the tragedy of the private and potential of is where the marketisation of these institutions the public. On the one side are the institutions of is being sped up in the name of ‘austerity’ in the international neoliberal regime – the ‘troika’ the aftermath of the 2008 financial crisis. of the European Commission, IMF and European Ironically, the idea of austerity was first used, Central Bank – that want to sell off the country’s in the aftermath of the Second War, to apply to public assets and use the money to pay its everything except the welfare state: spending creditors’ sky high interest charges. On the other on schools and hospitals was generous while side are the people, proud of their democratic people skimped on luxuries and paid taxes to traditions, rallying to defend their commons by fund post‑war reconstruction. Now tax is evaded building networks of mutual solidarity.

1. Greece: resisting the troika

Privatisation and the nature same polls, however, indicate parties and, compared to most, of the state is moving to the a point of vulnerability for the was relatively democratic centre of the struggle against troika: once more, it is water, the – responded with a 12-day austerity in Greece. The troika one issue on which a majority occupation of the company’s main is trying to speed up the sell-off opposes privatisation. And it is building. of the country’s public goods on this issue that resistance is The reputation that the water and resources by putting them beginning to gain momentum. workers’ union established with in one holding company to be The first initiatives in Greece activists in Thessaloniki has auctioned off in quick succession. towards politically decisive proved to be a foundation on The Hellenic Republic Asset resistance over water have which today’s growing campaign Development Fund (TAIPED), come from the country’s second has been able to build. Union as this company is pompously largest city, Thessaloniki. Here president George Archontopoulos named, might as well be an the preliminary steps towards says that in 2009 he used to invite auction house advertising an privatisation in 2007 were himself to neighbourhood groups ‘everything must go’ clear out. slowed down in part through to put the arguments against Resistance to this handover the resistance of the water privatisation. Now, he says, ‘they to the corporate market faces a workers’ union, which staged a are always asking us to come to challenge. In 2011 a poll found four-day hunger strike during them and there are many more that 75 per cent of Greeks the city’s international trade of them.’ In fact the driving and believed privatisation was fair. The first tenders were persistent dynamic behind the necessary; in 2012 it was down to eventually announced in 2009 latest campaign to defend public 62 per cent but still well over half and again the union – which, water, formalised in April 2013 in the population – even including unlike most unions in Greece, the formation of SOSte to NERO more than 40 per cent of voters had determinedly maintained (Save our Water, see below) comes for left wing party Syriza. These its autonomy from all political from angry and consequently

24 The Tragedy of the Private The Potential of the Public activist citizens as much, if not €136: the figure you get from giving up the practical project. more than unions. dividing the €60 million that the They are discussing now with ‘We spent more than six water company is to be sold to the the influentialE uropean Public months trying to convince them stock market for by the number Water Network about finding the that we act as citizens and not as of water meters in the city. ‘It funds to turn the public-public workers who are afraid of losing would, in effect, be a public-public solution into reality. ‘It’s no longer our jobs,’ he continues. ‘The truth answer to the troika’s public- a Greek issue. It has become is that they were testing us and we private partnership,’ explains an emblematic issue for the didn’t know! As you know, there Theodoros Karyotis, a founding European movement,’ explains is a lot of mud, sometimes rightly, member of Initiative 136 from Karyotis. ‘If the privatisation thrown at public servants and Thessaloniki’s social movements, is not defeated, it will be a real there can be a lot of corruption who has also been involved in setback for the return of water to in trade unions.’ The union supporting the workers of the the public, which is happening helped to overcome this generally city’s Vio.Me factory during their everywhere else.’ negative attitude to public occupation and now their self- servants by taking a militant line management of production. Wide coalition not only against privatisation George Archontopoulos but also against corruption, describes how ‘the idea first At the same time as pushing price rises and the growing came out of a press conference ahead with finding the funds number of water cut-offs. It was during the earlier struggles. and legal structures for the not surprising, then, that the To reinforce the argument for co‑operative, all those in new energies and convergences keeping water public we divided Initiative 136 spend time stimulated by young people’s up the stock exchange price by building a wide coalition against occupation of Thessaloniki’s the number of water users to privatisation. ‘We are working on White Tower Square in 2011 show how the public could buy two legs. The broadest possible – Northern Greece’s version of shares and keep the company alliance against privatisation the ‘indignados’ movement – in public hands. With the is the first leg and exploring a led to discussions between the indignados we turned this idea means of direct socialisation as indignados and the water workers. into a practical campaign.’ In the alternative,’ says Theodoros reality, the practical impact of Karyotis. ‘We must unite against Initiative 136 has been more in its privatisation,’ emphasises Kostas propaganda power – illustrating Marioglou, ‘and be able to debate vividly how water can be the best way to manage water for managed as a common resource the common good.’ For alongside ‘without relying on either private the unity there is a heated debate companies or the existing state,’ on Initiative 136. ‘Why should we as Kostas Marioglou, another buy what we already own?’ argue water workers’ leader put it. many in Syriza. ‘The problem,’ Although co-ops have been says Karyotis, ‘is how do we formed in eight of Thessaloniki’s stop privatisation? Lobbying, 16 neighbourhoods, and the city’s protesting on its own, does it get municipal council has given it anywhere? Initiative 136 is in one a unanimous welcome, people sense fighting them on their own simply cannot afford the one-off ground, exploiting a loophole, but €136. And municipalities hardly this is making it difficult to stop have the money to keep going. us, if we have the funds and we Initiative 136 ‘We are under attack have the popular support.’ on every front,’ declares ‘The target is common,’ insists From this came ‘Initiative 136’. Theodoros Karyotis, having just George Archontopoulos, who The idea is that if every water user returned from a 20,000-strong stood in the elections for Syriza, bought a non-transferable share demonstration against the gold ‘even if we shoot from different in public water, ‘the public could mining operations of Eldorado directions. Let’s surround the own the water company through in the nearby mountains and target!’ a system of neighbourhood co- the vicious police repression of A packed open assembly on operatives of water users coming anyone, including school children, 28 April 2013 in Thessaloniki’s together through a single overall suspected of protesting. But the city hall effectively declared co-operative’. It is named after organisers of Initiative 136 are not the target surrounded when

The Tragedy of the Private The Potential of the Public 25 it enthusiastically agreed to SEKE immediately won the City of Paris. For a start, the form SOSte to NERO (Save 17 per cent of the vote. ‘But we municipality gained 35 million Our Water) to co-ordinate knew we could become stronger euro that previously went into a massive campaign across through taking action with others the profits ofS uez, the company the region. It brought togther fighting privatisation and for responsible for the privatisation municipalities, unions, a management of water in the – and now wanting to take over neighbourhood assemblies, common good,’ says Tsokalis. Greek water. people from universities and SEKE made contact with Save Water in Paris is now technical organisations, and it Greek Water, and together run by a board that includes committed itself to reach out they set themselves the task of representatives of workers and the to raise awareness about the convincing all 45 municipalities public, independently supervised consequences of privatisation to support a commitment to by scientists and public through a concert in the main public water. representatives. Moreover, while square, and actions at the prices continuously rose under region’s major sports events. privatisation, they fell by 8% Convergence and growth after the first year of returning to of the movement to defend public ownership. Prices are now water is also a national 40% lower than in the outskirts of dynamic. A water movement the city where water is still run by developing across Attica, the a private company. region that Athens is part of, All this information, is converging on this same demonstrating that an alternative target, the imminent threat of is possible, sparked a stream privatisation. Like the water of questions. ‘There was such that it is defending, a flow of curiosity, so many questions, that campaigns is gathering force it was getting too late and we had across the municipalities of to stop or the room would close,’ Attica and from the port of recalls George Archontopoulos. Piraeus to the largest working He believes the meeting also had class residential suburbs of an impact on the bidders for the Athens. Thessaloniki water company: A determined driver ‘They take us more seriously now.’ behind this is an interesting TheS uez representative who and outward looking new stalks the anti-privatisation grouping of water workers for the A mighty leap forward in this campaigns was present at the EYDAP public water company task came when hundreds of meeting and seemingly a little of Athens. It calls itself SEKE people gathered in city halls in disconsolate at it’s success. (‘participatory unity movement’). Athens and Thessaloniki to hear ‘Where do you get these people?’ Vasilis Tsokalis, a founder from international speakers on he muttered to the local trade member of SEKE, describes its water. The water campaigns had union leader as he left. origins during the elections for talked a lot of the experience of It’s not just the big city centre worker representatives on the remuncipalisation in Paris and meeting with international EYDAP board. ‘Suddenly last elsewhere in Europe, spreading figures, however, that marks year this new organisation came the news of how it was a huge the new energies behind the together, from the left and centre improvement compared to private campaign - it’s also developments left, independent of the two old ownership. But now Greek people in localities. George describes parties. We wanted to get rid could hear it for themselves – and speaking at a meeting in of the existing board members ask all the questions they wanted. Eleysina, an area of Athens where who’d been there for over ten This is exactly what happened unemployment is high. He was years; one a member of PASOK when Ann Le Strat, Paris’ deputy speaking alongside an EYDAP and the other of New Democracy,’ mayor with responsibility for worker. ‘It was’, he said, ‘the he explains. ‘They had been water, spoke to what she said was first time that Thessaloniki and catastrophic actually, working the biggest meeting she’d ever Athens water companies talked with management and the spoken at. She set out the details publicly against privatisation.’ political parties, saying they were of the benefits for the public of against privatisation but doing water coming back under the nothing.’ ownership and management of

26 The Tragedy of the Private The Potential of the Public Citizens’ movement Synodinou, observes the ‘huge meant Syriza not only supported amount of wasted talent’ under social movements but also ‘learnt Vasilis Tsokalis says emphatically: clientelism; as a trade union from these movements about ‘This is a citizens’ movement.’ leader, George Archontopoulos the nature of the alternative’. Theodoros Karyotis stresses the describes how ‘workers’ opinions Syriza’s leadership see this ideal importance of the ‘autonomy and information are ignored’. of supporting and learning of our movement from all In other words, people are from autonomous movements political parties’. Their insistence describing an economic force: at the same time as aiming for comes from a history in which social creativity, stimulated and government as a central challenge independent civil society has nourished through co-operation as it develops from a coalition been suffocated by the two and mutuality. Conventionally into a party. Andreas Karitzis main political parties. But it it is termed ‘social capital’ and explains: ‘Syriza is dangerous also comes from a positive tends to be used to encourage because it combines those two sense of emancipation from the networks of social cohesion to elements, governability and hierarchies, dependencies and cope with economic hardships, the strong connection with the pervasive forms of domination without challenging structural social movements fighting the associated with a state operating inequalities. More radically, with government. The strategy of through clientelism. transformation in mind, this same the government is to force us In the past, many public social capacity can be understood to decide. I am hopeful because servants privately tried to work as the productive potential Syriza members, whether more outside this culture but now of democratic, participatory revolutionary or more reformist, this individual refusal is turning economics, including in the recognise that there is no into a collective alternative way organisation of the public sector. solution if we lose one of these of engaging with politics. In the elements.’ If the coalition against powerful wake of the protest Changing opinion water privatisation in Greece, movement of the past two years, simultaneously resisting and the flourishing of self-organised The polls on privatisation experimenting with alternatives, collaborations such as Initiative imply that such alternatives are develops its momentum, it could 136, SEKE, the factory occupation essential to changing public mean that the troika’s attempt at Vio.Me and more are all opinion, as the same people to sell off water will again evidence of this. who view privatisation as a prove to be a fatal move by the Nadia Valvani, Syriza MP necessity also believe that it political class. and member of its economic benefits foreign multinationals committee responsible for and does not benefit consumers. The judgement of privatisation policy, sensed this This indicates that their view is the high court in the rise of Syriza during the more to do with hostility to the first elections of 2012, when the existing state, a state already The strength of the grassroots coalition’s vote rose from the 4 bent towards meeting primarily campaign to defend Greek water per cent it obtained in 2009 to 27 private interests. The problem is has won what could be a historic per cent. ‘There was something the absence of any awareness of victory in the judgement of deeper than political sympathy,’ alternative management of public Greece’s high court Symvoulio she remembers. ‘At gatherings in services and common goods. Epikrateias (which has the power people’s houses I sensed a kind Members of Syriza’s to override the government). of emancipation process. There economics committee are Legal procedures move slowly were people there who were not attentive to the importance of in Greece, and it’s too early to tell especially left who wanted to the initiatives autonomous of the significance of the judgement, change their whole way of life the coalition – from citizens but the informal information and see an end to the clientelist and workers as citizens – for coming from the court in relation to politics. They came developing convincing and November 2013 is that water to us for a way out. They want practical alternatives. In a cannot be privatised. to participate, not just to vote. forthcoming book, Crucible The all-important grounds If I hadn’t lived through this, I of Resistance, one of Syriza’s for the judgement have not been wouldn’t have been convinced.’ economic spokespeople, Euclid announced. The news of the This emancipation also Tsakalotos, points to the decision is of little significance releases productive capacities. formative importance of debate until the judgement is formally An engineer in a responsible in the early years of Syriza on written down and presented position with EYDAP, Antigoni ‘governmentalism’. The conclusion to the public. There is no exact

The Tragedy of the Private The Potential of the Public 27 timetable for this final, formal stage in the workings of the highest court. The approach to the court is one outcome of the campaigns in Athens and Thessaloniki to defend water as a public good. In June 2013, the two public water companies EYDAP and EYATH, along with several groups of citizens, requested that the court rule on the legality of water privatisation. But its judgements and their implementation are complex and ambiguous. The court has a record of judgements against sales which citizens considered to be privatising the commons. Two which had attracted much attention were the sale of Kassiopi, a particularly beautiful part of Corfu, to US investment PSI company NCH Capital, and the Elliniko’s deputy mayor and a volunteer at the free community health clinic that the municipality has set up as stop-gap sale of Ellinikon, the old airport response to cuts to public health services in Greece. and one of the best seaside localities near Athens. The snag, however, is that the common good. Like the Save Our the two parties of the German arguments the court accepted in Water campaign in Greece, it has coalition government, the Social ruling against privatisation were managed to translate the strong Democratic Party (SPD) and the technical objections concerning popular defence of water into Christian Democrats (CDU) have the existing use of the land. For legal protection of the commons. signed an agreement to protect example, in the case of Kassiopi, Taking the form of a water as a human right. But in the judgement against the sale European Citizens’ Initiative Greece, where the role of the EU was based on the presence of a – the mechanism that allows (as part of the Troika) could be military base; an objection which EU citizens to propose an item decisive, the EU is not holding the government then overcame for European legislation if they back the drive to privatise. by relocating the military base, collect a million signatures from Once again an unprecedented so that the privatisation could at least seven EU countries – it pincer movement of popular proceed. It will not be clear, until asked the European Commission struggle and legal action is being the formal judgement is given, ‘to propose legislation blocked by the Greek government. whether once again the judgement implementing the human right to Nadia Valavini has tried to fails to accept the wider argument water and, amongst other forms unblock the process, or at least against privatisation, based on the of protection, to exclude water use her parliamentary platform protection of common goods. from liberalisation’. to draw attention to the Europe- An MP who has been at the Public service trade unions wide success of the Citizens’ forefront of the parliamentary played a leading role in the Initiative for water. campaign, Nadia Valavani, is campaign, which managed to On two occasions, Nadia anxious that the court might gather 1,857,000 signatories, and has tried to use a parliamentary limit its judgement against has become the firstE uropean procedure whereby an MP can privatisation to the infrastructure Citizens’ Initiative to be activated. present a question to a minister of the public companies, leaving In October 2013, European in a plenary session of the Greek the water itself unprotected. Commissioners Michael Bernier parliament and achieve a ten Nadia has also been in the and Oli Ren declared the minute discussion which can forefront of trying to pursue privatisation of water must stop. attract publicity for an issue and another, Europe-wide, initiative Several governments have agreed, put pressure on the government for water as a human right and at least formally. For example, to act. She has asked finance

28 The Tragedy of the Private The Potential of the Public minister Yannis Stournaras opportunities to put a case to the people that they can create how he is going to implement minister in 2013. ‘But January new democratic institutions to the European legislation to is another year,’ she said with manage common resources. protect water as a common good, determination, ‘maybe we can We will study two in detail achieved through the initiative. start again then.’ for the lessons they offer for the On both occasions, despite As a campaign still in future: Newcastle Council, in advance notice, the minister progress, the outcomes and the north of England and the chose to be absent from the lessons of the Greek experience Model Municipality Project in parliament. ‘Whenever there are not yet determined. Yet Norway. We will also summarise is the possibility of something other experiences, in Northern evidence of a process of return to good, from our point of view, Europe, give strong grounds public ownership after the failure it gets blocked,’ says Nadia (although in different conditions) of privatisation in France and wearily. She had used up her four for the confidence of the Greek Germany.

2. Newcastle City Council, a laboratory of public service change

I was fortunate enough in 2009 accessible to the public. What effort at publicly-led reform to study, from the inside, a self- gave the process its special created an ideal laboratory to consciously public process of character was people’s pride test and elaborate the hypothesis public service reform. After in transforming these basic that democratisation rather than a hard won struggle by the services as public servants – and privatisation is the best way to city council’s UNISON union the democratic basis on which modernise and improve public branch against the privatisation the changes were agreed and services. In testing this, my of the council’s IT and related implemented. intention was also to explore the services, the unions worked with ‘It wasn’t about resistance to mechanisms of change when it management on a negotiated change,’ explains Tony Carr, who is driven by democratic public programme of improvement of was the full-time UNISON rep service goals rather than by profit. the service. for the staff involved in these This strategic (if ‘backroom’) services. ‘It was about controlling Keeping it public: a strategic service includes systems that your own destiny and not having campaign collect council tax, deliver someone come in and manage us benefits and make public services through change.’ Such an explicit At stake for the company in the struggle over privatisation was a £250 million, 11-year contract. For the staff and the union, it was 650 jobs – and the quality of strategic services on which other council departments depended. The strategy of the UNISON branch to achieve this determinedly public-driven programme of internal reform had five essential elements, all of which laid down foundation stones for the democracy of the transformation process itself: 1. Building on a tradition of participatory organisation, the priority was to involve members in every step of the campaign: from mass meetings and the election of reps when

UNISON ‘market testing’ was first UNISON’s Newcastle city council branch built a city-wide ‘public service alliance’ to counter the government’s announced, through industrial concerted attack on public services with a positive defence of public provision. action against privatisation,

The Tragedy of the Private The Potential of the Public 29 to the reps scrutinising the found a lot that we knew could on a problem come together to private bid and contributing to be done better. From then on resolve it. the ‘in-house’ bid. I felt confident about what we The union campaign against 2. The second element in the were trying to do keeping it privatisation laid the basis for real strategy was to intervene in in-house.’ staff engagement in the process of the procurement process and This leads into the final reform. The union was involved campaign for an effective component of the UNISON at every stage, from selecting in-house bid. ‘We had to branch’s thinking – the leadership new managers to discussing recognise that even though treated union members as skilled every significant change. ‘It’s we were against the whole people who care about their our job to keep the management concept of “market testing”, work. Josie Bird, who chairs the accountable, not so much to if we actually wanted to win branch, said: ‘We recognise that the staff but to the change,’ said an in-house bid we had to our members want to provide a Kenny Bell. intervene at that level from the service. It’s not a romantic idea beginning,’ said Kenny Bell, that they live to work. No, they then convenor of the UNISON work to live – but it does matter branch. that it’s a public service that they 3. Campaigning meant reaching work for.’ out to the public, building The campaign was successful. popular support for a general The in-house bid drawn up by opposition to privatisation. management in agreement with ‘Our City Is Not For Sale,’ the unions was clearly better declared the banner leading public value for public money. several demonstrations of In 2002, the then Labour- trade unions, community run council (since 2004 it has organisations and dissident been Lib Dem) gave it the go Labour councillors. ahead and borrowed £20 million 4. Fourth, although the union to invest in it on the basis that filled a political vacuum savings would eventually more in standing up against than pay back that investment. privatisation, UNISON no Some jobs would go, but without more wanted to take the compulsory redundancies and UNISON final decisions about who with exceptional resources for Kenny Bell of UNISON, leader of the Newcastle struggle. should deliver services than it training and redeployment. wanted management to do so. The pressure on the elected Why union strength is vital to Ray Ward, the senior manager politicians eventually paid democratic reform who led the changes, echoes the off, with the council passing point from the management’s a resolution insisting that It takes two to tango for change. point of view. ‘The union alternatives to privatisation The process of improvement keeps us honest,’ he said. It’s must be found. involved a change in the nature of a collaboration, but the union 5. Campaigning was little use management, from ‘commanding has retained its power to act unless it was grounded in to coaching’. A new kind of public independently and to escalate strategic research. Key to sector organisation has emerged, a conflict if necessary – the the success of the UNISON with a leadership role that is more union wouldn’t be trusted by branch was the work of the about facilitation and developing its members if it couldn’t. And Centre for Public Services, a shared direction than it is about the management knows this. with its participatory method exercising control. Initiative The result is an experiment in of work that shares skills and and responsibility has been industrial democracy with real intellectual self-confidence. pushed away from the centre, benefits in terms of quality of For UNISON shop steward and layers of supervision have services and the best allocation of and housing benefits worker been eliminated and replaced public money. Lisa Marshall, collaboration by support. The dynamism of with the CPS on investigating the department lies in working the bid of the private sector across its different sections rival was a turning point: ‘As through project groups, letting we looked over their bid, we all those with a relevant angle

30 The Tragedy of the Private The Potential of the Public hh A precondition of the industrial private company instead of ‘in- committed to serve their fellow democracy involved in this house’. Repeatedly the answer citizens. This is exactly the asset process has been a common came that it would have meant that privatisation squanders. vision of high quality, publicly- all sorts of extra charges – for hh An expansion of the idea of delivered public services. making changes to respond strengthening local democratic d This shared goal provided to needs or problems not

r control over public money a basis for motivation and foreseen in the original contract a has focused on strengthening common purpose – a mutually – and a lot of time diverted to

w citizens’ participation. The accepted reference point that negotiating them. This is one of r Newcastle experience takes our avoided drift and helped to the costs of privatisation. o thinking about democratisation

f overcome conflict. It enabled hh The service reforms in further by opening up and the management and union Newcastle illustrate in a modest democratising the normally

ry ry leadership constantly to move but practical way how the hidden, taken-for-granted r the process forward. public sector can have its internal processes of managing

ca hh There was a financial own criteria and mechanisms public resources. As long as the foundation to this revitalised for efficiency, quite distinct internal organisations of the o

t public service culture – but from goals of profit. This public sector are top-down,

s the goal was to maximise story provides evidence that, fragmented and semi-oblivious public benefit rather than to with a clear shared vision, an to the real potential of their

o maximise profits. Again the egalitarian and professional staff, all the participatory determinedly public-led nature management, a strong union democracy in the world can s of the transformation process and workplace democracy, the be soaked up and defused

Le s n threw the distinction into sharp public sector has the capacity or blocked by hierarchical relief in every key relationship. to make itself a highly effective structures and bureaucratic Ask Newcastle staff what steward of public money. procedure. The process of it would have meant if this In particular it can realise its internal democratisation, relationship had been with a special asset of skilled staff therefore, is essential.

3. Norway and the Model Municipality The Norwegian labour movement, show, in the words of municipal The experiment especially the municipal workers’ workers’ leader Jan Davidsen, that union Fagforbundet, has a the union ‘has a visionary desire The project laid out several real practical understanding to develop the municipalities assumptions. Reading them of the link between defeating to become even better service is in many ways like reading a privatisation and achieving providers in step with new systematisation of aspects of the democratic internal change organisational needs, new work Newcastle experience. in the organisation of public tasks and new service needs of There is an assumption of administration. residents’. equality between the partners In 1994 there was a change in They called it the Model in the process – administrators, Fagforbundet’s programme, from Municipality Experiment. From politicians and workers – when it hoping for the best in the face of the beginning it was based comes to organisational change. privatisation to giving a strong on actual experiments that As the Model Municipality lead in the fight against it. But the municipalities volunteered for agreement puts it, ‘No one is union was constantly challenged on the basis that no competitive invited here when others have by people asking ‘We hear what tendering would take place made up their minds. Ideas and you are against, but what are during that time. Since then it visions, as well as proposals you for?’ has been extended to over 150 for specific measures, will be They took up the challenge to municipalities. the result of processes where

The Tragedy of the Private The Potential of the Public 31 everyone has been a contributor.’ Secondly the public service workers are seen as drivers of change, working with residents as users of specific services, schools, kindergartens and so on. The challenge is how to kick-start this change. This leads to the third assumption: that the process needs support, encouragement, relevant additional expertise and a transparent process for following up workers’ ideas. In the city of Trondheim, where a left political alliance won power locally by taking up a trade union manifesto, they are using a variation of the Model Municipality system to challenge the old hierarchies. I visited the organisational engine room to see how it worked. This meant visiting Rolv Erland, an Fagforbundet energetic young man just back Norway’s Model Municipality system involves workers in improving services, with impressive results. from working in Palestine, and his team of 30 ‘change guides’ or ‘development advisers’. up until there is a result.’ Siw cent to 2 per cent. ‘But,’ she said, The work of these guides, for a added, ‘They are beginning to feel ‘the focus is not on money but on day or so a week, is to encourage secure in making suggestions. improving the quality of service.’ workers to come up with They know that they’ll keep Norway’s is not a perfect suggestions, organise discussions involved with what happens model. While it has systematised and ensure that ideas are followed to their ideas. It won’t be used industrial democracy, and opened through to a decision. against them.’ As in Newcastle, up new channels for workers’ I spoke to two of these change the unions’ involvement in the involvement, it has been much guides – Karin, a nurse, and Siw, a process ensures that. This is the less developed when it comes to teacher. The guides can volunteer important lesson from Norway. involving citizens who use the from any part of the municipality The framework of the Model services in its decision-making and get time off for training and Municipality is called ‘the processes. to work with different groups of tripartite’, which sounds rather But its impact has been a workers. Instead of focusing on bureaucratic. But in fact these lasting one. This union-led their own department they get meetings of politicians, managers alternative to privatisation involved with other services, the and workers’ representatives are became a source of inspiration theory being that this helps them to decide on action to support and pressure for the formation of to bring a fresh view without proposals coming from below, a coalition of left parties that won getting too immersed in low-level and to follow through on any the general election in 2005 and detail. budgetary implications. With began Norway’s unique reversal no consultants hanging around, of the Europe-wide processes The difference is the follow-up there’s one saving that has been of privatisation and corporate made already. tendering. I asked Karin and Siw how they Anne-Grethe Krogh, one were finding the process. Were of the originators of the Model people coming forward with Municipality, also gave examples ideas for change? ‘People are of some dramatic savings through not shy,’ said Karin, ‘but they’ve the drop in sick leave as a result of been asked their opinion before workers finding new satisfaction and nothing happened. The in their jobs. In one extreme case, difference is that we will follow sick leave had fallen from 11 per

32 The Tragedy of the Private The Potential of the Public d hh As with the Newcastle experience, but in a improvement in public services but its hierarchical

r generalised and systematic way, the Model organisational forms limited its responsiveness a Municipality builds a continuing dynamic of to changing and expanding needs. This made it w

r innovation and improvement into public services vulnerable initially to the claims that the private

o in response to need. It’s a dynamic fuelled by sector would be more efficient. In reality, for a f the knowledge and commitment of frontline whole number of reasons this claim has been

ry ry providers and users. The tripartite way that proved false time and time again. The logic of r it is organised also provides a framework for profit simply does not meet the imperatives of

ca developing a strategic overview of change. social need and human rights. But the challenge

o of building mechanisms of innovation and

t hh The importance of this is that an important and improvement into public services remains and the s still lingering context of the surge of privatisation Model Municipality is an important, systematised was the limits on the ability of the public o and successfully tested example of how this can sector as it was originally built to innovate and

s be done. improve. There are many examples of impressive Le s n

R emunicipalisation – the new trend

The issue of public efficiency services back in-house as a way In Lodeve, France, the local is becoming a major factor in of making savings. Even the council decided to terminate a the beginnings of a reversal of Financial Times has suggested private street-cleaning contract privatisations and other kinds of that local authorities have grown and remunicipalise in 2009. outsourcing in local government. sceptical about the savings The company’s workers went A study by David Hall for the outsourcing can deliver, as well as on strike – with the support of European Public Service Union fearing a backlash against private the company! However, after a (EPSU) finds that there are clear companies making large profits meeting with the mayor where signs that municipalities are from the taxpayer. the workers’ rights to transfer continuing to move towards It is telling that this trend were explained and respected, ‘remunicipalisation’ rather than is occurring in the context they returned to work and the privatisation in a number of of massive cutbacks in public service was remunicipalised. countries in Europe, including spending across Europe – a A much better way of doing Germany, France and the UK. pointer to the fact that in practice, things, of course, is when union He reports a study in 2011 when the market ideology is put and citizen campaigns have been by Leipzig University of over aside, the claim of ‘private equals the spur to remunicipalisation, 100 German municipalities efficiency’ melts into air. forcing a consideration of the which concluded that the trend Sometimes, however, efficiency of the private company is towards greater provision by remunicipalisation is the result of from a public benefit point of the public sector. In France, the a political or managerial decision view. In Stuttgart this involved original homeland of private when a contract is up for renewal a head on conflict between the water companies, an increasing and the managers calculate that CDU city government, which number of municipalities and outsourcing is in fact not in the had effectively sold off key regions, including Paris, are municipality’s best interest. In services, and the public service remunicipalising water services or some cases, David Hall points union ver.di working with a public transport. out, this move can create tension strong coalition of citizens. This Even in the UK, where the with the unions, who don’t struggle contributed to a change national government is still want workers to go through of government, the election of a pushing through privatisation the uncertainty of yet another red-green coalition of the SPD, in the post, healthcare and change of employer to get back the Greens, Die Linke and the prisons, and demanding cuts into the public sector. This can local Stuttgart Ökologisch Sozial, in local government spending, be exploited by the private firms which then remunicipalised municipalities are often bringing involved. the services.

The Tragedy of the Private The Potential of the Public 33 Chapter 4

New foundations for an economics of public benefit

The experiences described so far have a number of equity, the creativity of labour, responsiveness of common features which make them harbingers to the community, and full accountability and of a new kind of trade unionism. We can’t know transparency. its details – it is in the process of being created When you explore further, you find in many of through such struggles – but we can understand its these cases that the trade unions were influenced foundations, the better to build upon them. by traditions which see workers not simply as In all these struggles against privatisation of wage earners but as knowing subjects. These public services, the trade unions moved beyond the broader political dynamics do not come simply defence of their own jobs and working conditions, from workplace organisation or trade union to taking responsibility for both defending a organisation narrowly defined. Whether shaped public service and democratising the way it is by the commitment to participatory democracy managed. The goal of making it accountable, characteristic of the Brazilian labour movement, transparent and responsive to citizen need became the syndicalism influential in the formation part of the resistance. A common feature of all of SAMWU or the radical social democratic the experiences is the role of the union and union traditions of Uruguay, these unions are conscious community alliance in organising and sharing of themselves as actors for a wider agenda of the knowledge and skills of public service workers social justice. The question, answered in practice and users. This knowledge has been the basis of by the campaigns in this booklet, is what kind of developing alternative ways of organising the organisation and strategy can best develop and service guided to varying degrees by principles support this consciousness.

R ecognising the creativity of labour to meet social need

T o understand these examples context of the capitalist market labour that under capitalism is of how unions have consciously is both ‘abstract’ and ‘concrete’. It subordinated to the employer- taken responsibility for the is abstract in that it involves the imposed discipline of producing social purpose of their members’ production of commodities that exchange value and maximising work and made alliances with are exchanged in the market for profit. the users of services, it helps money from which the employer In the struggle over to draw on Marx’s insight into takes profit and pays wages.O ur privatisation, this tension is the dual nature of labour under labour is also concrete in the particularly acute, especially capitalism. (My aim in the next sense that it produces material when those defending publicly few pages is to dip into the products or services of particular provided public services do so theoretical tool bag, for some usefulness. in terms of the public usefulness sharp tools to cut our way out What matters for the light of or social need for the service. of the neoliberal framework this sheds on today’s struggles (Rather than simply in terms of and to create a perspective for alternatives to privatisation jobs and wages, separated from which can generalise from the is that there is a difference here their importance for the quality – kind of initiatives we have been between two kinds of value, the or ‘use-value’ – of the service.) describing to defend the public, exchange-value of abstract labour The point here is that publicly democratic management of public and use-value of concrete labour. funded and delivered public services – but I won’t be offended They are in constant tension: the services are economic activities if you want to skip this section!) production of use-value being the that have been partially taken Marx argued that labour in the potentially purposeful creative out of the capitalist marketplace.

34 The Tragedy of the Private The Potential of the Public And as non-market and at least formally democratic institutions, they are governed by political and social goals, and the economics of the organisation is about the allocation of budgets – constrained by levels of taxation and therefore levels of public revenue. Essentially it is a very different economic arrangement from that of a capitalist PSI enterprise. PSI unions in Ghana, Nigeria, Burkina Faso, Liberia and Sierra Leone have joined together in a cross-border network to The distinctiveness of the improve union capacity and the ability of healthcare workers to advocate for and deliver quality public services. public sector from the point of view of the organisation of labour has often not been very private sector, with governments becomes about more than public apparent; nor have its measures or councils as the employer rather versus private ownership. It of efficiency often been very than capital. becomes also about democratic sensitive to considerations of While public sector unions control over the process and public benefit, the quality of often deployed sources of purpose of workers’ labour, relations with the public or the bargaining power specific to the including the accessibility and nature of the service. In the name institutionally political nature quality of the service itself. of a notion of efficiency often of their members’ employment The idea of the dual nature copied from the private sector, the contracts – mobilising public of labour implies that what we public sector came to replicate opinion, using party-union are seeing is an extension of the the ‘production line’ practices links, and so on – it has been priorities of public service trade of private capitalism, with each exceptional for these unions to unionism beyond exchange worker allotted a small, repetitive make the nature, organisation value (for example, over union task and given no opportunity to and future of the service as such members’ pay or their working use their creativity and knowledge central to their campaigns. time) to encompass an explicit of their work to shape the whole. Trade union strategies concern with use value (for Thus the important point is that focusing on developing or example, the quality of the the worker becomes alienated radically reforming public public service provided). This from their own labour. services, in close alliance with commitment to the purpose Similarly, as far as trade fellow citizens, began to appear and quality of the service has union responses were concerned in response to privatisation and always been characteristic of before the pervasive spread other forms of commodification public service workers. The point of privatisation, the taken- that which had been out of, or here however is that in these for-granted routines of trade partially out of, the capitalist transformative struggles against unionism in the public sector market. These strategies of radical privatisation, it becomes a central generally appeared to be based reform create a dynamic in which issue around which public service on those of trade unionism in the the struggle against privatisation unions are organising.

Participatory democracy and workers’ control

S truggle over the character of the movements of the 1960s and of labour in the process of public sector is not new. For the 1970s through to the experiments democratisation they wanted past 40 years or so, movements in participatory democracy of to see. Understanding the and struggles of many kinds have the 1980s and the environmental struggle against privatisation as tried to make the setting of public justice movements of the 21st potentially a struggle over use service goals more democratic, century, there has been growing value helps us overcome this with more participation by pressure to make the actual, strategic limitation. Defence of the public and hence a greater living public a powerful presence the partially de-commodified responsiveness to public needs in public decision-making. nature of the public sphere opens and expectations. From the But these movements up distinct possibilities for the student, feminist and urban rarely focused on the role struggle against alienated labour.

The Tragedy of the Private The Potential of the Public 35 its social democratic as well as Soviet forms, these pioneering struggles could be useful sources of insight for achieving what we could call ‘socially efficient’ public services. However, there are dangers as the public sector confronts the destruction of public services in the name of ‘austerity’. One response from neoliberal governments has been to try to bribe or force workers into non-public forms that are not quite privatisation but are more PSI favourable to those in charge. Members of STAL Portugal march in protest against austerity plans to force the privatisation of municipal services. One example of this has been in Britain, where the Conservative government has been trying In particular, it opens up the some control, in collaboration (generally unsuccessfully) to possibility for public service with the citizens who use their get workers to break away from workers to express themselves labour, point to a profound council employment by forming through their labour, in the extension of democratic control a so-called ‘co-operative’ (or delivery of services to fellow over public services. sometimes a ‘social enterprise’) citizens, as knowing, feeling The idea of more direct citizen and tendering for contracts people, rather than simply as participation in the way public themselves. This has been seen by workers selling their labour power services are managed and in the unions, and much of the public, – their creativity – as if it were a ways that local public budgets are as a thinly camouflaged form commodity. spent is a familiar one. Across the of privatisation. Reading the For workers to express world there are many experiences small print of the Conservative values of public service through of ‘participatory budgets’, proposals is like watching an their work is not necessarily ‘popular planning’ and various airbrush. What begins with fine easy, partly because of the kinds of direct participation talk of power to the workers hierarchies and control strategies in the running of particular ends with bringing in ‘experts’ of management and partly services. But the implication of (high-paid consultants) and ‘joint because trade unions often the argument here is that the ventures’ (private corporations). limit their role, especially in deepening of democracy and the Changing economic the face of concerted cutbacks, idea of ‘participation’ needs to ownership from private profit- to a defensive one. They do not extend to greater involvement seeking owners to co-operatives necessarily provide support to of workers in public decision- of workers and users would be workers whistle‑blowing on bad making about how their labour is an excellent way of transforming management or making an extra used. In this way, public service the market sector away from effort to provide good care. workers can ensure that their capitalism. But strategies for But when trade unions creativity is for the benefit of, and democratising the public sector struggle against privatisation, in collaboration with, their fellow must start from the recognition the emphasis on the use‑value of citizens. that public goods are different. public service work often comes This implies a wholly new We must be able to make their to the fore. It is the workers’ approach to the division of delivery accountable in ways commitment to the purpose of labour and the management of other than the market – in ways their labour that underpins the public services – one based on that recognise their value to all. move from a struggle simply to collaboration and motivation One option proposed in a report defend workers’ livelihoods to a rather than a bureaucratic version on co-operatives commissioned struggle over a service that should of the discipline and divisions by UNISON is to push for be for the benefit of all. of the capitalist market. As a co‑operatives in privatised These struggles against development that comes out of services as a step towards privatisation, based on workers not only privatisation but also the returning to the public sector. effectively insisting that they have failure of the command state, in

36 The Tragedy of the Private The Potential of the Public Working across borders for public benefit

An increasingly strategic way of building a positive and powerful alternative to the relentless onslaught of privatisation is collaboration between public authorities, often driven by trade unions and citizens’ movements, supported by committed researchers and activists, like those who come together internationally in the Reclaiming Public Water (RPW) network. We have already come across it in the context of the campaigns to defend and improve public water in Latin America. Over 130 of these alliances, known as ‘public-public partnerships’, or PUPs, have been forged in 70 different countries. Many are transnational or PSI transborder partnerships, usually PSI members from around the world rally during Global Forum on Migration and Development meetings in New York City. skipping the national level and instead linking public utilities together directly, though it is union strategies. At the same but related dynamics evident important to note that some time, the process of working at when labour and the trade PUPs are within the same country this transnational level presents unions have been involved in and are a way of building on and a serious challenge to unions alternatives to privatisation. On spreading local victories in a whose strength in working for the one hand, there is a struggle context where the movement is alternatives lies with the active to transform the management not sufficiently strong to take on support and evolving capacity of and labour process in the public national government directly. A their members in the workplaces. sector to maximise public benefit network of PUPs helps to build a FFOSE in Uruguay had been and create mechanisms of powerful base to demonstrate the one of the unions at the forefront accountability; and on the other effectiveness of the public option. of developing public-public hand, strategies to build counter- Through these partnerships, partnerships in Latin America. power to the macroeconomic public organisations are able Adriana Marquisio says they pressures exerted by capitalist to keep up the process of can be a ‘distant issue from the power. improvement, learning new day-to-day lives of the workers’, They are distinct and technologies, gaining greater so it is important for the unions not always in sync. But the access to finance, and practising to bridge local membership experiences observed here, better forms of management and involvement with the often corroborated by a wider range training. In Latin America, there international level at which the of experiences, indicate that is a concerted attempt by trade partnerships are negotiated. ‘We both dynamics are necessary to unions working on alternatives have discussed this topic in our successful alternatives – though to privatisation to develop union structures, and we run not sufficient on their own. public‑public partnerships across workshops and conferences with the continent on the basis of the aim of incorporating this the principles of accountability process into our organisation,’ she and participation that they have says. She’s optimistic that this has developed locally. been successful: ‘In FFOSE today, The important role of trade we have a new generation that unions in pushing them is an has taken up the issue with great illustration of the multi-level interest.’ character of emerging trade Here, then, are two distinct

The Tragedy of the Private The Potential of the Public 37 Chapter 5

Building coalitions

The understanding that we described earlier for Sale’ was decisive in winning over the majority of union members as part of the community of Labour politicians in Newcastle. They were and service users as well as workers, with the taken away from a fatalism that said there was commitment to providing high quality services little room for alternatives, and a defensiveness to their neighbours and fellow citizens, opens about whether the public sector could really unions to work closely with service users and do it better than the private sector, towards citizens more generally. recognising that their voters would not stand for In all the examples we’ve explored these privatisation and the unions’ alternative had to be alliances have been strategically essential. They seriously considered. have brought together sources of expertise – When they were founded, the community practical, expert, investigative – that were vital to union alliances I have looked at here were blazing transforming the organisation of the service, its new paths. Today, most trade unionists would accessibility and its quality. The local and regional agree that they cannot halt privatisation on their assemblies that developed alternatives in the own. Still, though, we face strategic and practical Brazilian campaign, the plans for transforming problems in actually forming these alliances and the organisation of the state water company OSE, combining the different strengths of our various and the way the Hillstar process depended on the allies to build the power we need to win. knowledge of local communities all illustrate this process of building a ‘counter-knowledge’. So too international collaboration, whether through PSI, RPW or through direct transborder and regional collaboration, leads to a sharing of information and strategic understanding otherwise not available on a national basis. On the other hand, the success of these alliances in countering the pressures of global corporate and financial power (and the acquiescence of the political system) depended on their ability to use a variety of sources of power and influence to win legitimacy and build political support for the public option.

For example, the creation of a confident and PSI politically broad city-wide campaign against Trade union and civil society allies at a PSI public water workshop at the World Social privatisation under the banner ‘Our City is Not Forum in Tunisia.

Knowing what’s kicking off in your community

One vital way of forming alliances – is often ahead of trade union cuts that undermine their ability is keeping an ‘ear to the ground’ resistance to the causes of these to deliver the services as they’d about what’s going on in your failures. wish – but without making the community – and being ready to Sometimes action is just connection. Sometimes individual support community campaigns taking place in separate silos. So trade unionists are even involved when they spring up locally. while the community protests in the protests but without Community protest about failures about the neglect of its needs, necessarily thinking how the of service delivery – often a direct public service workers are union could make common cause or indirect result of marketisation protesting about the job or wage with them and their neighbours.

38 The Tragedy of the Private The Potential of the Public Workers are service users just as itself to community protests. of change. service users are workers. This may well be a pointer to Congress resolutions are never In South Africa in 2012, a gap not just between unions enough, but you know change the union federation COSATU and he community, but between could be for real when resolutions carried out a survey of its unions and their own members are followed by allocations of members which showed that 24 – in other words, the problem resources and of people – not to per cent of COSATU members of alliances with communities expand head office but to work have participated in community is also a problem of the internal day-to-day with community protests in the past four years. culture and organisation of the campaigners. There are now Yet this is not reflected in any union. There are several signs of many examples of this working significant closeness of OC SATU awareness of the problem and in practice.

Putting stewards on the ground

Let’s take two, from SAMWU communities that are protesting collaborate. The steward was in South Africa and UNISON against the bills. These are often acting as an initial bridge between in Britain. Both recognised communities where they live; the union and the community. that their own workplace-based they know that paying the bills At the same time, UNISON bargaining power alone was not generated by the cost-recovery created a new post in the city of enough to resist casualisation policy of the council, and the ‘community campaigner’. It was and sub-contracting, but also poor conditions of the housing, their responsibility to follow up that communities were able would mean children going to this new network of links and to mobilise other moral and bed hungry. In large numbers organise union support around political sources of power, they have refused to implement community issues. These included including disruptive power – the cut-offs – and have been defending and improving schools, their equivalent of the strike. supported by the union in social care, youth facilities, These kinds of power needed doing so. housing and planning issues to be brought together for the Newcastle UNISON had and so on, where the union and same cause. a similar approach. First, it community groups had shared That was the thinking behind mapped the communities where goals. This had consequences SAMWU’s Cape Town Metro UNISON shop stewards live, and beyond the immediate campaigns branch setting up a network supported them to make contact – for example, it also boosted the of stewards to reach out to with community groups where union’s fight in the city against community groups where they they live and identify how the racism and the fascist party BNP. live. Lennox Bonile, who we union and the community might met in chapter 1, is working in Khayelitsha as part of this network. He is meeting with local organisations and winning support for SAMWU’s campaign to make jobs on the Expanded Public Works Programme permanent, well paid, properly trained and with the protective clothing the workers need to preserve their health. SAMWU’s work with communities has also involved direct support for service delivery protests. Practical support for direct action against electricity cut-offs for failure to pay is a good example. It is SAMWU members who, as frontline staff, Mac Urata are responsible for going into the UNISON Newcastle established community campaigners and trained union stewards to reach out to community groups.

The Tragedy of the Private The Potential of the Public 39 O pening the union to the community

A more formalised approach of the initiative. ‘The union offers Like all the other trade unions to building links with the something. It offers a concrete, in this booklet, they see their community is the initiative of collective form of action.’ While struggle as being about the Unite, one of Britain’s largest one lone person faced with quality of the education they unions, to open its membership to housing benefit cuts has few ways provide and therefore a matter unemployed people, pensioners, of voicing the ‘terrible situation for the community as well as the students and others without jobs. it’s left them in’, Halligan points workplace. Their innovation was For 50 pence a week, members out that ‘when there’s a thousand to organise assemblies around of Unite’s ‘community branches’ people all screaming together every school, through which gain some practical benefits, the same thing it’s easier to get a parents and students could be including the use of the union’s message across’. involved in discussing the quality legal help line, debt counselling Teachers in Chicago, USA of education and influencing the and tax advice. But for the adopted another approach content and organisation of the organisers of these branches, to working closely with the campaign, illustrating in practice the material benefits (though community as part of a campaign that at the centre of the campaign welcome) are just ‘trimmings’ to resist cutbacks in teachers and was the quality of education. compared to the wider potential the introduction of reforms which These assemblies also made it for empowerment. teachers believed were preparing difficult for politicians to isolate ‘At the moment people are the way effectively to privatise the teachers and portray them fragmented and desperately the schools, turning them into as fighting simply for sectional crawling around at the bottom for Charter schools. They knew interests. One poll showed the something,’ says Alex Halligan, that a strike would eventually be teachers had the support of two- secretary of Salford trades council necessary but decided on a two thirds of parents. and a driving force behind both year plan of campaigning to build the centre and the local branch up to it.

Conditions for successful coalitions: some general lessons

In many countries, after decades Unions have had to prove that unions as they learn new ways of constant public vilification they are committed to serving the of participating in alliances with from neoliberal governments of wider public, rather than simply other kinds of organisations, varying political colours, trade seeking instrumental alliances to whether social movements, NGOs unions are in quite an isolated save their own jobs. or initiatives and networks, and position. (It is important to It’s worth trying to summarise experiment with new forms of remember that much of the what has eased the task of communication and new ways of initial impetus behind neoliberal building effective and lasting organising and making decisions. economics was to weaken labour.) alliances, drawing from the The experiences described Much of the unspoken motivation experiences in this booklet, and here, especially in Brazil and behind privatisation has been to from other research – for example Uruguay, show these unions smash public sector unions. the very useful work by Amanda acting more as a resource for a This makes the building Tattersall, a teachers’ union variety of organisations, rather of lasting collaborative activist in Australia, based on than asserting themselves as a relationships with service users case studies of community-trade singular leader or centre. They and communities especially union coalitions in Canada and indicate a recognition that we important. It also makes it Australia. all, communities and public hard. In the context of high A first condition which shines service workers, succeed or fail unemployment and large informal out from all these experiences is together – even though the economies, public sector workers that the trade union does not seek market treats us only as atomised are presented as ‘privileged’ and to control the alliance it enters. individuals. There is a growing are often regarded with suspicion, Instead, it is willing to enter into acknowledgment of the need to accused of being interested only an alliance without always being learn new ways of organising and in their own welfare however in the driver’s seat, representing communicating from the new much they may claim otherwise. a significant change for many generation of activists, and several

40 The Tragedy of the Private The Potential of the Public PSI PSI affiliates and NGO allies have mobilised in protest against the privatisation of public water services in Indonesia. examples of unions beginning to self-education is also evident in of the disintegrative forces of do so. their international collaboration. the neoliberal economy – in A further distinctive feature For example, when water particular, the casualisation and of the way trade unions work workers’ leader Abelardo de precariousness of work and the with others on a basis that Oliveira Filho says ‘international erosion of traditional forms of values different sources of power help and exchange has been trade union solidarity. Under and capacity is the emphasis essential in our struggle’, he is these conditions the workplace on developing their shared referring, amongst other work, is often the home, or the streets. knowledge for collaborative to the investigations initiated by Issues of community, family, self-determination. This is Public Services International in education and health become understood as vital to effective carrying out the mandate their inseparable from those of work, strategy and is evident in a strong members gave them to resist or lack of it. emphasis on, and demands the privatisation of water – to A final point about these for, worker education and look into ‘how the privateers alliances is their relative professional training. worked’. This, in turn, led to autonomy from political parties, This emphasis on developing the creation of a dedicated including those for which their the capacities of members of Research Unit, the PSIRU, members probably vote. This is a the alliance is a feature of all whose method, in line with PSI’s reflection of the understanding the unions mentioned in this philosophy, brings together that community struggles will chapter. It is achieved through different forms of knowledge of outlast the temporal dynamics for example, consciously activists, researchers and civic of electoral politics. It is an making time for self-education, organisations. autonomy of perspective and consciousness-raising activities A further issue that arose knowledge as well as organisation, like seminars and workshops and in the building of some of underpinned by the independent through commissioning research the coalitions involved in the resources and institutional not from traditional, distant experiences here concerns the capacity of the unions. It is ‘consultants’, but from researchers relation between community perhaps telling that FNSA became committed to the goals of and work. These alliances did notably dormant after many of the struggle and recognising not make rigid distinctions its leaders became members of the knowledge of activists between ‘work’ and ‘community’, Lula’s government, even though, as necessary to complement as if they were separate worlds. as we noted earlier, pressures the knowledge that comes These movements are now, to privatise, especially at a local from research. in part, about building new level from Brazilian corporations, This commitment to collective forms of collectivity in the face have continued.

The Tragedy of the Private The Potential of the Public 41 The potential, and limits, of trade unions

T rade unions still have large, source of practical and expert and other vital resources dues-paying memberships knowledge, drawing on workers’ for mobilisation. And their – a potential popular reach dual role as community members institutional stability, along with unparalleled by political parties and as public servants, which can material or physical resources, today. Only organised religion be used as a basis for building can enable unions to be what and football are still serious alternatives to privatisation. FFOSE’s Carmen Sosa described competitors in this regard. Unions’ mass base can be a as the ‘spinal cord’ of campaigns It is true that some dues come source of bargaining power too, made up of more precarious, from members who are mainly including for a bargaining agenda scattered civic forces. passive, paying them through a concerned with the quality and On the other hand, these check-off system negotiated with protection of service provision. factors can have their dangers the employer. Nevertheless, if the The financial resources members too. Institutional longevity can union is a campaigning, activist provide can give unions a material be a source of cautiousness – union, its potential popular reach base to build critical institutions of a union leadership putting is significant. It can be a unique of education, communication, protection of the institution or a short-term view of members’ interests before a more transformative, but perhaps riskier, approach. Union leaders are also subject to the electoral cycle, starting at the shop floor electing stewards, all the way up to president. Thus, to stay in office (and one could say to implement the vision, programme, etc), the official/ activist needs to keep their ‘electorate’ with them. This means they must be seen as being effective in defending the rights and interests of the members. The key question is to identify how best to defend these rights and interests. Leaders with vision will understand that labour rights can best be defended when they are linked to other rights, and that the struggles are founded in a rights-based strategy. Recently, we must add the rights of nature to the rights of labour, the rights of women, and so on. Similarly, while links with political parties can enable unions to exert political bargaining power to counter private elite pressures on political parties, they can also be a basis for passiveness among union members once the party wins office. The widespread assumption then can be that protecting, expanding, and improving public services can be

Fraser Crichton Fraser left to the government. Demonstrating strong public resistance to privatisation in New Zealand.

42 The Tragedy of the Private The Potential of the Public Platforms for public service values Josh Berson PSI affiliates in Canada are active leaders in provincial and national campaigns for public, affordable, accessible child care systems.

The discussion of the relation of should be organised as commons, privatisation all move issues – of these alliances to politics leads whether natural or social, to ownership, sources of finance, naturally to noting the impact which access and involvement is the nature of contracting, of privatisation on our political a human right. The significance measurements of efficiency, environment and culture. of the role of trade unions and and so on – from being neutral, Privatisation, and all the various citizens’ alliances in defending technical, and opaque, into the attempts to run public services these commons is that they open world of values, power, and as if they were private companies are giving a positive, organised debates over different goals and needing to make a profit, public voice to underlying beliefs interests. In this sense, unions effectively drain democratic in public service values that are play a vital role in a process of politics from any decisions about otherwise being squeezed out of democratic politicisation of the public services. Everything any public political expression. means of service provision and becomes a matter of balance Where they are effective, delivery. sheets. Accountants become the they provide a visible platform centre of power. Values, social for counter-arguments that purposes and priorities are swept give confidence and a language aside as cumbersome junk from to describe and reinforce the an earlier age. instinctive recognition that these Water, land, health, education, natural resources and essential transport, social care, facilities public services should not be and training for young people treated as a commodity. and all the resources and services The campaigns we have on which living well depends described for alternatives to

The Tragedy of the Private The Potential of the Public 43 Conclusion: Unfinished business

Whether we face the post-apartheid state in South to completely destroy the country, is insisting Africa, the corrupt Greek state, the paternalist on privatisation. Syriza, the party leading the and hierarchical British state or many other resistance and showing daily that there are varieties of states, we are not simply defending alternatives, is very clear that it is not defending public services as they were. In all the cases in the state as is. As Aristedes Baltas, coordinating this booklet the point is to democratise, open member of Syriza’s programme committee, says, up and improve the way services and indeed the ‘The Greek state is one which throughout all these state itself is organised: accountability, ending decades if not centuries has been hostile to the corruption, introducing participatory methods people. We have to open up the state to the real of government, achieving transparency, creating needs of the people. We will ask for a general means by which the knowledge of all is used for assembly of all those who work in the ministry the benefit of all. These are the themes of the and explain the new situation, and encourage campaigns we have described. their initiatives to make the state responsive to Indeed, one reason why corporations, working the needs of the people.’ closely with neoliberal governments, have got so The hope, he explains, is to encourage ‘a far with privatisation is because the public sector surge of people wanting to participate, produce as we have known it has not been truly public. ideas. This will be the first time such a thing will With a few exceptions, the public, though wanting have happened in Greece.’ This is an ambitious public services, have not had any control over the strategy to not only democratise a state that is services which are managed in their name. institutionally corrupt, but also open up the work Consider Greece for example, where the troika, of the ministries to the stifled creativity of public contrary to all common sense and as if aiming sector workers and citizens alike.

Why public services that serve the people matter for an alternative economics

S tories of successful public is a lack of things that need doing! to defend water as a publicly service reform – increasingly rare Depressions lead to social owned and managed utility, in an in this age of the scorched-earth devastation. One foundation era when so many banks around economics of austerity – are not stone of a new, more humane the world have been nationalised, simply relevant to the case against political economy should be the it seems a logical next step to privatisation. They are also expansion of a democratically insist that finance should also fundamental to an alternative reformed public sector. To assert be organised as a public good – economic strategy to counter the importance of democratic a public utility that serves the the fast-moving descent into alternatives to privatisation for people. economic depression and climate the building of a human-centred annihilation. – rather than profit-centred – Publicly-led public service society implies a radical challenge reform on the basis of the kind to austerity policies and the of principles and experiences unregulated, profit-driven nature explored here lays the basis for of finance that lies behind them. creating new and useful jobs in This unleashed power of private the public sector more widely finance is the product of perhaps – in building public housing, the ultimate privatisation, as caring services, youth services, finance and political power environmental services, IT, together try to drive everything strengthening the social economy public to destruction. and so on. It’s not as though there Just as we have seen struggles

44 The Tragedy of the Private The Potential of the Public PSI Union leader Baba Aye from PSI affiliate the Medical and Health Workers’ Union of Nigeria (MHWUN) speaks about the need to address inequality by funding quality public services at “The World Needs Tax Justice and a Financial Transactions Tax” workshop, World Social Forum, Tunisia.

A work in progress

One final thought. All the new round of privatisation and wait for the perfect theoretical campaigns described in this social immiseration, there is an blueprint – our actions must help booklet are part of building a alternative. When development to guide the theoreticians. It is by global struggle for public services policies are benefiting only a mobilising in our communities that serve the people that is tiny minority, there must be and our workplaces for common inevitably a work in progress. alternatives. And when people solutions that we will create Likewise, this booklet is itself a are reluctant to resist, it is often new models. work in progress, so we ask that because they lack confidence in you send in your experiences. No such an alternative. campaign has, or would claim An alternative cannot be an to have, the finished, definitive abstract programme – it must model – yet, as I have laid out, be one that really exists, on the there are important lessons that ground, at the grassroots, and is can be learned from all. being built right now. Our task is Perhaps the most important to get out there and spread those lesson of all is this: that in an experiences, and through such era when increasing numbers examples foster not only hope of people are unhappy with for a better world but confident the system as-is, with austerity engagement in building it here programmes pushing for a and now. We do not need to

The Tragedy of the Private The Potential of the Public 45 Further reading Balanya, Brennan, Hoedeman, Kishimoto, and Terhost (2008): Reclaim Public Water Fattori, Tommaso (2012): Public-Commons Partnership and the Commonification of that which is Public Council of Europe Publishing n. 27 (2013): Trends in Social Cohesion, Hall, Van Niekerk, Thomas and Nguyen (2013): Renewable energy depends on the public not private sector Lethbridge, Jane (2013): Why the private sector kills more than it cures. Countering arguments in favour of privatisation MacDonald and Ruiters (2012): Alternatives to Privatisation; Public options for Essential Services in the Global South Hall, Lobina and Terhorst (2012): Remunicipalisation in Europe Hall, David (2012): Corruption and public services Hall, Lobina, Corral, Hoedmann, Terhorst, Pigeon and Kishimoto (2009): Public-public partnerships (PUPs) in water Trade Union Co-ordinating Group report (2013): The Real Cost of Privatisation Wainwright, Hilary (2012): Transformative Resistance: The Role of Labour and Trade Unions in Alternatives to Privatisation in Alternatives to Privatisation, MacDonald and Ruiters (eds) Whitfield, Dexter (2010):Global Auction of Public Assets: Public sector alternatives to the infrastructure market and Public Private Partnerships, Spokesman Books, Nottingham Whitfield, Dexter (2012): In Place of Austerity-Reconstructing the economy, state and public services, Spokesman Books, Nottingham Wainwright and Little (2009): Public Service Reform... But Not As We Know It

Useful websites Centre for Labour Studies (Class): www.classonline.org.uk European Federation of Public Service Unions: www.epsu.org European Services Strategy Unit: www.european-services-strategy.org.uk European Water Movement - Protecting Water as a Commons: http://europeanwater.org Municipal Services Project: www.municipalservicesproject.org Public Services International: www.world-psi.org Public Services International Research Unit: www.psiru.org Reclaim Public Water Network: www.tni.org/network/reclaiming-public-water-net Trade Union Co-ordinating Group: www.tucg.org.uk Transnational Institute: www.tni.org TNI: Reclaiming Public Water - Achievements, Struggles and Visions from Around the World: www.tni.org/tnibook/reclaiming- public-water-book?context=599 Water Justice - see resource centre on alternatives to water privatisation: www.waterjustice.org We Own It: weownit.org.uk

46 The Tragedy of the Private The Potential of the Public Acknowledgments This booklet, like most production processes, has involved many people in its flow: many are referred to in the text. Others who have helped with my research, hosted me, read and commented on the text as it has taken shape, inspired and challenged me or simply encouraged and supported me include Sergio Baerlie, Jane Barrett, Marco Berlinguer, Huw Beynon, Roy Bhaskar, David Boys, Nick Buxton, Brid Brennan, Michael Calderbank, Daniel Chavez, Derek Clarke, Evelina Dagnino, Fiona Dove, Steve Faulkner, Sam Gindin, Leonard Gentle, Patrick Kane, Carmen Ludwig, David MacDonald, Doreen Massey, John Mawbey, Robin Murray, Kevan Nelson, Sheila Rowbotham, Greg Ruiters, John Saul, Mark Serwotka, Jane Shallice, Anne Slater and Pietje Vervest. I’d also like to thank the designer Jean‑Pierre Dauly, and the sub-editor Tom Walker. I dedicate it to the memory of my mum, Joyce Wainwright, on whose phone much of the early research was done and who was ever‑curious about what I was writing, always challenging me to relate whatever it was to people’s urgent needs and struggles. CGIL Nazionale CGIL In Italy’s national referendum, voters indicated they were overwhelmingly in favour of keeping water services in public hands, but the fight against privatisation continues.

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