Privatization versus union-management cooperation: the effects of competition on service efficiency in municipalities

Article Abstract:

This article examines the residential solid waste collection experiences of two municipalities in Greater Vancouver. One has periodic competition (a contract with a private firm), the other a permanent public monopoly (city crews collect all residential solid waste). The case studies permit comparisons of cost and productivity figures over time within and between the two municipalities. Both municipalities have been successful in containing escalating solid waste collection costs. Further, crew productivities have increased sharply for both municipalities since 1981. Regional competitive pressure on solid waste collection producers in Greater Vancouver is the key factor in explaining cost and productivity successes in both municipalities. Public producers are periodically exposed to unsolicited bids from private firms and to cost comparisons among municipalities in the region, six of whom are now served by private contractors. Equating privatization with improved efficiency needs to be qualified by recognizing that competitive pressure is a critical incentive to improve efficiency. Public (monopoly) producers of municipal services that are exposed to competition have an incentive to find more efficient means of serving the tax-paying public, and can offer an alternative to privatization. (Reprinted by permission of the publisher.)

Refuse and refuse disposal, Waste disposal, Waste management, British Columbia, Vancouver, British Columbia

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Ontario's Urban Transportation Development Corporation: a case study in privatization

Article Abstract:

The privatization of government-owned corporations reflects both the trend towards a greater reliance on the market, and attempts to better manage the public sector. But while advocates of privatization assume that it will readily yield gains in efficiency, a number of problems arise if governments seek to pursue public policy goals following privatization. The Ontario Liberal government's privatization of the Urban Transportation Development Corporation illustrates the difficulty in completely disentangling the government and the corporation, Complicated links between the UTDC and the government have evolved since its creation which were essential to the performance of the UTDC either as a public or as a private corporation. Furthermore, the government sought to continue to protect employment using the UTDC after privatization in addition to the UTDC's original goal of promoting high technology in the field of urban mass transit. The resulting agreement between the government and the buyer, Lavalin, is a complex deal in which the government retains a substantial interest in the new firm. Rather than a sharp break between the government and the firm, what occurred was a change in the mix of instruments used by the government. (Reprinted by permission of the publisher.)

Economic aspects, Economic policy, Urban Transportation Development Corp. (Ontario, Canada)

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Part-time fire fighters in Canadian municipalities: cost and effectiveness comparisons

Article Abstract:

This article reports findings from a cross-Canada study of municipal fire departments. Data gathered from a survey of 104 fire departments in 1981 and 1982 indicate that the use of part-time fire fighters in Canadian cities over 10,000 population is widespread. Overall, municipalities that rely on mixed full-time and part-time fire departments or on all-volunteer departments enjoy substantial cost savings. Further, when fire department effectiveness is compared among full-time, mixed and all-volunteer departments, full-time and mixed departments are about equally effective. Fire departments employing a mix of full-time and part-time fire fighters, particularly in communities up to 50,000 residents, enjoy the benefits of lower fire service costs without sacrificing effectiveness. (Reprinted by permission of the publisher.)

Finance, Fire fighters, Firefighters, Part-time employment, Part time employment, Fire-departments, Fire departments

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