G4S is just the latest in a long line of outsourcing disasters

When will we learn?

The left has long understood many of the many problems of outsourcing: the fact that it typically replaces at least semi-decently paid, full-time staff, with career paths and a commitment to the service ethic, with a casualised, often minimum wage, rapidly-changing group of workers who are struggling to survive – often working two or three jobs. (Even in “professional” areas such as GP surgeries and IT, relatively low pay and casualisation is the norm.) The cash not going to the work force is redirected into shareholders' pockets, all too often through off-shore, tax haven companies that fail to contribute tax to the society in which they're based, from which they’re extracting profits.

But most of all, we’ve understood that it doesn’t work. We’ve seen it fail again and again. The outsourcing of hospital cleaners contributed to a rise in hospital-acquired infections and super-bugs. Multiple government IT projects have gone seriously and expensively off the rails. Then there’s the still unfolding scandal of the ruinously expensive PFI scheme for hospitals (and other public institutions such as schools) which has just claimed its first victim, with the South London Healthcare NHS Trust going into administration. And railways and the Tube, and call centres…. the list goes on and on.

And now we’re finding, with G4S unable to guarantee that it will provide the contracted staff for the Olympics, that we’re calling on the army to help. So visitors to London will see a militarised Olympics, with expensively trained soldiers doing work that they have no training, and possibly no inclination, for. It’s difficult to know which is worse soldiers doing jobs they aren’t suited for or for that work to be done by some of the many £2.60/hour security “apprentices” that we learnt about during the Jubilee security outsourcing scandal. These arrangements for Olympics security may not be a recipe for public safety or confidence.

The writing is on the wall, but a lot more still has to be done to highlight the basic flaw of outsourcing, the reason why it does not, cannot work: the supplier of outsourced services and the purchaser have different objectives. It's as though your service is balanced on a rubber band held by two people running in different directions. Sooner or later it is going to snap, or one side be dragged back.

One small example from my working life, details anonymised for contractual reasons. At one time a widget producer had staff security people, who understood their job to be assisting in the smooth production of widgets. They knew the company, they knew the staff, they understood at least a bit about making widgets, and they used their common sense, their knowledge and some flexibility in applying the security rules to assist in the making of widgets. Then they were outsourced. New staff came in, employed by the security firm, for the purposes of security. They applied the rules as laid down by their company rigidly and inflexibly (indeed they were at risk of losing their job if they didn’t).

They didn’t know or care about the production of widgets, or that they were actively hampering their production. One told me – while I was trying to get a freelance widget worker through the system: “We’re subject to penetration tests you know.” (And no this wasn’t MI5 or Scotland Yard.) Cue rampant frustration, many wasted hours of staff time and a considerably less pleasant working environment. And fewer widgets produced.

As with so many aspects of our neo-liberal, hypercapitalist economy, outsourcing doesn’t work even in its own terms. It is a disaster, on financial, service and social grounds. We've got a government now that's ideologically wedded to it, as part of the "market knows best" religion, despite the obvious collapse of the case for that creed in the past few years, and the main opposition party that finds itself too close to its past failures to publicly recant – even if it wanted to, which given the return of Tony Blair you’d have to conclude it doesn’t. On top of that, we've got a whole generation of people in senior public service and private sector management with crisp, expensive and intellectually mediocre-to-worthless MBAs in this outsourcing "religion", who lack the knowledge of any other approach or the ability to adapt to the obvious facts under their nose.

There's a long road ahead to reverse direction from this outsourcing dead end. But we can start by saying, loudly, clearly and often, that outsourcing is a disaster. It does not, cannot, work as well as forms of organisation based on shared goals, whether they be co-operatives or public ownership at local or national level, or at least a company in which permanent, decently paid staff are working together towards the same aim.

Natalie Bennett is chair of Green Party Women and the former editor of the Guardian Weekly

 

Soldiers have been drafted in to help with security at the 2012 Olympics after G4S failed to recruit enough staff. Photograph: Getty

Natalie Bennett is the leader of the Green Party of England and Wales and a former editor of Guardian Weekly.

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Labour's establishment suspects a Momentum conspiracy - they're right

Bernie Sanders-style organisers are determined to rewire the party's machine.  

If you wanted to understand the basic dynamics of this year’s Labour leadership contest, Brighton and Hove District Labour Party is a good microcosm. On Saturday 9 July, a day before Angela Eagle was to announce her leadership bid, hundreds of members flooded into its AGM. Despite the room having a capacity of over 250, the meeting had to be held in three batches, with members forming an orderly queue. The result of the massive turnout was clear in political terms – pro-Corbyn candidates won every position on the local executive committee. 

Many in the room hailed the turnout and the result. But others claimed that some in the crowd had engaged in abuse and harassment.The national party decided that, rather than first investigate individuals, it would suspend Brighton and Hove. Add this to the national ban on local meetings and events during the leadership election, and it is easy to see why Labour seems to have an uneasy relationship with mass politics. To put it a less neutral way, the party machine is in a state of open warfare against Corbyn and his supporters.

Brighton and Hove illustrates how local activists have continued to organise – in an even more innovative and effective way than before. On Thursday 21 July, the week following the CLP’s suspension, the local Momentum group organised a mass meeting. More than 200 people showed up, with the mood defiant and pumped up.  Rather than listen to speeches, the room then became a road test for a new "campaign meetup", a more modestly titled version of the "barnstorms" used by the Bernie Sanders campaign. Activists broke up into small groups to discuss the strategy of the campaign and then even smaller groups to organise action on a very local level. By the end of the night, 20 phonebanking sessions had been planned at a branch level over the following week. 

In the past, organising inside the Labour Party was seen as a slightly cloak and dagger affair. When the Labour Party bureaucracy expelled leftwing activists in past decades, many on went further underground, organising in semi-secrecy. Now, Momentum is doing the exact opposite. 

The emphasis of the Corbyn campaign is on making its strategy, volunteer hubs and events listings as open and accessible as possible. Interactive maps will allow local activists to advertise hundreds of events, and then contact people in their area. When they gather to phonebank in they will be using a custom-built web app which will enable tens of thousands of callers to ring hundreds of thousands of numbers, from wherever they are.

As Momentum has learned to its cost, there is a trade-off between a campaign’s openness and its ability to stage manage events. But in the new politics of the Labour party, in which both the numbers of interested people and the capacity to connect with them directly are increasing exponentially, there is simply no contest. In order to win the next general election, Labour will have to master these tactics on a much bigger scale. The leadership election is the road test. 

Even many moderates seem to accept that the days of simply triangulating towards the centre and getting cozy with the Murdoch press are over. Labour needs to reach people and communities directly with an ambitious digital strategy and an army of self-organising activists. It is this kind of mass politics that delivered a "no" vote in Greece’s referendum on the terms of the Eurozone bailout last summer – defying pretty much the whole of the media, business and political establishment. 

The problem for Corbyn's challenger, Owen Smith, is that many of his backers have an open problem with this type of mass politics. Rather than investigate allegations of abuse, they have supported the suspension of CLPs. Rather than seeing the heightened emotions that come with mass mobilisations as side-effects which needs to be controlled, they have sought to joins unconnected acts of harassment, in order to smear Jeremy Corbyn. The MP Ben Bradshaw has even seemed to accuse Momentum of organising a conspiracy to physically attack Labour MPs.

The real conspiracy is much bigger than that. Hundreds of thousands of people are arriving, enthusiastic and determined, into the Labour party. These people, and their ability to convince the communities of which they are a part, threaten Britain’s political equilibrium, both the Conservatives and the Labour establishment. When the greatest hope for Labour becomes your greatest nightmare, you have good call to feel alarmed.