Fighting the Attack on GOOD JOBS: TSEU Thwarts Privatization, Saves 2,900 Jobs

Mobilization by the Texas State Employees Union-CWA, combined with a contractor's own ineptness, has brought to a grinding halt plans to close 99 local human services offices and lay off 2,900 state employees.

When the Texas Legislature in 2003 passed a bill authorizing the conversion of the state's human services eligibility system to a privatized call center system, most supporters and opponents of the plan were sure it was unstoppable.

"TSEU-CWA Local 6186 refused to accept that consensus. Hundreds of our activists led the local forward into an all-out fight to put an end to the deal," said local Vice President Mike Gross.

The state awarded an $899 million contract to Accenture, a Bermuda-based consulting firm, to establish up to four call centers around the state to process residents' applications for Temporary Assistance to Needy Families, Food Stamps, Medicaid and other services. Accenture set up call centers in Midland, San Antonio and Austin and planned to shut down other offices around the state, causing layoffs of CWA-represented state workers.

The Midland call center began processing applications for the Children's Health Insurance Program (CHIP) and children's Medicaid in November 2005. In January 2006, the Austin call center began processing applications for all services.

The number of children enrolled in Medicaid dropped by 79,000. CHIP enrollment dropped by 31,000 over a period of four months. A backlog of 6,000 food stamp applications lingered in Austin.

Because of this poor performance, the state's Health and Human Services Commission (HHSC) halted the call center experiment and returned more than 12,000 backlogged cases to state employees.

TSEU-CWA mobilized throughout the experiment and kept its 12,000 members informed of the new, privatized system's failures by issuing bulletins as frequently as twice a week. Groups of TSEU-CWA members lobbied county leaders, state legislators and members of Congress, building bipartisan opposition to the plan. Ninety-three county governments and two local Chambers of Commerce passed resolutions, prepared by the local, opposing the plan.

Then, on July 12, 60 state representatives asked the HHSC to cancel its contract with Accenture and rebuild the state's community-based system.

"Every dollar we spend on our health and human services is precious," wrote Republican state Rep. Pat Haggerty of El Paso on behalf of 12 Republicans and 48 Democrats. With $103 million already spent, he wrote, "We do not have the luxury of throwing good money after bad."

Accenture and its political allies are scrambling to rebuild support but, said Gross, "TSEU-CWA members are not resting: delegations are visiting legislators and candidates asking for their commitment to oppose the call center plan and join the call to cancel the contract."

JOHN CUSICK

TSEU-CWA Local 6186 members at every human services office made banners protesting the state's plan to contract their work to non-union call centers.