Coalition of Detroit Public Schools Unions Challenges Bobb: 'How Did You Calculate These Claimed Savings?'

DETROIT, Feb. 1, 2011 /PRNewswire-USNewswire/ -- The Coalition of Detroit Public Schools Unions issued the following statement:

"Detroit Public Schools Emergency Financial Manager Robert Bobb has been in that post for two years.  When he assumed his duties, the district showed a $200 million deficit.  Now, with the benefit of Mr. Bobb's services and leadership, the deficit had grown to $300 million.  With one month left on his contract, Mr. Bobb has announced a move to privatize all non-instructional services, and claims savings of $75 million.

"We are familiar with the costs of wages, benefits and pensions for the 1,255 positions impacted by this scheme.  Mr. Bobb has stated that wages will remain at current levels; that the contractors will provide health care and pay 90 percent of the premiums; and that the contractors will provide a 401(k) retirement plan.  The only visible source of savings in this scheme is the difference between the cost of the current retirement plan and the cost of the 401(k) plan.  We calculated the difference, and over a five year period, it does not add up to $75 million.

"Mr. Bobb, the taxpayers have a right to know how you arrived at your numbers!  Come forward, face us, and explain your claims!  The savings you claim are not there!  Show the world the contract with Sodexo and the contracts with the subcontractors which you claim yield these savings!

"Privatization is not the answer to the problem.  Detroit Public Schools have tried privatization, with various contractors, notably including Aramark Facilities Management, and we all know this doesn't work.  Detroit Medical Center has severed its relationship with Sodexo, and brought DMC employees back to do the work.  The issue is the students.  They deserve the best, and subcontracting does not yield the best.  Privatization downgrades the level of service and thrives on cost overruns.  It is an invitation to corruption at all levels.

"Detroit Public Schools employees and their Unions have already made $105 million in concessions.  We care about our schools and our students.  Keep these services in Detroit, provided by Detroit Public Schools employees."

The Coalition of Detroit Public Schools Unions includes: Detroit Association of Educational Office Employees (AFT Local 4168); AFSCME Council 25, Local 345; Detroit Federation of Para-Professionals (AFT Local 2350); Detroit Federation of Teachers (AFT Local 231); Greater Detroit Building Trades Council; Radio and Television Broadcast Engineers, Local 58; International Union of Operating Engineers; Organization of School Administrators and Supervisors (AFSA Local 28).

SOURCE The Coalition of Detroit Public Schools Unions