A cautionary tale from across the ditch: Maia, of Capitalism Bad, Tree Pretty, has a post up in the sad told-you-so category, Politicians Shocked About Predictable Consequences of their Policies. The policy in this case was New Zealand’s public health system privatising the provision of disability support, with contracts for assistance services put out to tender to for-profit companies.
Surprise, surprise. Disabled people are not getting the services they are entitled to, and the contractors who won the tenders are complaining that they can’t find enough employees willing to do the necessary work, especially on late shifts and weekends. As Maia points out, the news article she links has missed some important words in their reportage here on the absence of willing workers here, and those words are “when they pay near minimum wage”.
The MPs who were shocked, shocked I tell you, are either fools or liars (usually both). When you subcontract services out to companies with the lowest tender you drive down wag[e]s. In fact that’s usually one of the main points of this subcontracting.