Detroit unions, candidates oppose Bing’s moves to privatize

Detroit Mayor Dave Bing (Creative Commons photo by Dave Hogg via Flickr)

DETROIT — Union leaders, city council candidates and charter revision commission candidates are balking at Mayor Dave Bing‘s proposal to privatize a sizable portion of the city government in order to reduce the flow of red ink.

Privatization was a key element in the proposal put forward earlier this week by Bing and his voluntary Transition Turnaround Team, which they say will save as much as $600 million in the next two years.

Included in the more than 150 recommendations are proposals to privatize the operation of the Coleman A. Young International Airport, turn over the city’s payroll and accounts receivable departments to a private company, and close the city-owned Mistersky Power Plant and replace it with energy purchased from DTE Energy. Bing says those moves could save the city more than $12 million.

But if Bing follows the plan to privatize these city services, his battle with organized labor will likely intensify.

John Riehl, president of AFSCME local 207 union minced few words, calling Bing’s effort to outsource city jobs a sign of corruption. “Service delivery isn’t want the mayor wants,” Riehl told Michigan Messenger. “He wants to reward his corporate backers with lucrative contracts.”

Riehl said the city will likely lose money as a result of privatization. “I don’t have any confidence that [private contracts] are going to save money. Generally we see that they cost more money.” Riehl described Bing as a “Republican Brooks Patterson type,” referring to the GOP Oakland County executive.

Riehl especially criticized a plan to close the city’s Mistersky power plant. “Now, instead of modernizing and maintaining equipment they’re just buying power — it reflects lack of investment. What it will mean is Detroit will give up potential to be a market player in energy.”

In addition to Riehl, some city council and charter revision commission candidates have publicly taken a stand against privatization.

At a Monday night workshop sponsored by the 14th Congressional District Democratic Party Organizing Committee and the grassroots group Michigan Democratic Future, candidates voiced their opinions against privatization.

“If I were elected there would be a total prohibition on privatization,” charter revision commission candidate Rose Mary Robinson pledged at the meeting.

“Privatization takes us in a direction we don’t need to go,” said charter revision commission candidate Ken Harris, suggesting that the city build coalitions of community and business leaders to brainstorm new ideas to help shrink the ballooning deficit.

Incumbent councilwoman JoAnn Watson went so far as to suggest that Bing should not be re-elected. “Bing needs to go,” she said at the meeting.

Among the candidates who pledged to protect against privatization at the event were city council candidates James Tate, Gary Brown, Jai Lee Dearing, Raphael B. Johnson and Andre Spivey. Charter revision commission candidates in attendance were Jonathan Kinloch, Reggie Reg Davis. School board member Marie Thornton also spoke against privatization taking place the Detroit school district.