Council opposes outsourcing

The Monroe County Council unanimously opposed IU's proposed outsourcing plan in a letter to University officials Tuesday.\nThe letter, which was signed by all seven members of the Council, outlined their resistance to why the University should reconsider plans to contract some services including the IU Motor Pool and IU Bookstore.\n"Outsourcing the numerous jobs that have exponentially benefited Monroe County and the State of Indiana is an initiative that certainly strains the harmony that exists between Indiana University and life beyond the Sample Gates," the letter stated. \nThe educational opportunities afforded to University employees also bolstered the entire community, the letter added. \nMichael Woods, president of the Monroe County Council, said he worried that if employees worked under a private corporation, they would lose the fee courtesy -- a benefit that allows University employees and their families to attend IU at reduced rates. Even though he said he had not seen any formal corporate proposals, which have not yet been released to the public, Woods said he expected the overall pay and benefits of the employees to diminish. \nBy maintaining a "high degree of control" over contracting some of the services, Woods said the University could write clauses into potential contracts that will ensure the continuance of employee benefits.\nA snowball effect could also arise if outsourcing plans come to pass, said Sophia Travis, a Monroe County councilwoman. If one company sees IU privatizing some of its services, other companies -- likely unrelated to the University -- would follow IU's lead, she said. \n"This county council's bold stand sends a message to the labor unions in Monroe County that we support them and their livelihoods and we think it is important to protect their jobs," she said, adding that such an overt statement was highly unusual for the council. \nTalk of contracting several University services stems from years of slowing financial support for IU by the state legislature. Officials who support the proposal, including IU Trustee William Cast, have said that without finding some way to cut glut costs, the University could have trouble maintaining academic standards. Cast said the potential money saved from contracting would benefit needy humanities departments at the University. If contracting the bookstore and IU Motor Pool proved successful, Cast said the trustees would consider expanding privatizing other areas such as food services.\nThe potential money saved might only be temporary though, Travis said, calling view of some officials "shortsighted." She said that if these employees saw a decrease in wages or benefits, a greater strain would be placed on the county's social services. It could also lessen revenues from the County Option Income Tax -- a tax that varies with a county's economic state, Travis said. If this happens, she said the county could have a very difficult time meeting basic infrastructure needs. \nThe objections filed by Monroe County officials follow moves taken by other local and state officials. Those that formally opposed the proposition include, Bloomington Mayor Mark Kruzan, state Reps. Matt Pierce and Peggy Welch, both Bloomington Democrats and Senator Vi Simpson (D-Ellettsville).\nThe trustees are expected to receive a report and take action on the issue at their next business meeting, scheduled for Feb. 1 and 2 at the Bloomington campus.