New Food & Water Watch Study Reveals Privatized Water Systems Result in Job Losses

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Kate Fried, Food & Water Watch (202) 683-2500

New Food & Water Watch Study Reveals
Privatized Water Systems Result in Job Losses

Washington, D.C.—New analysis released today by the national consumer advocacy group Food & Water Watch finds that privatizing municipal water systems threatens jobs and negatively affects local economies. Water Privatization Threatens Workers, Consumers and Local Economies finds that while multinational corporations often claim to reduce operational costs, they do so by cutting corners, downsizing essential employees, decreasing salaries and impeding union activity.

“The facts clearly state that privatization is bad for workers, consumers and local economies,” said Wenonah Hauter, executive director of Food & Water Watch. “Multinational water corporations are not beholden to the workers or communities where they operate, but to shareholders overseas. By cutting jobs and offering lower salaries, privatizing water systems takes money out of communities while turning a public resource into a profit center.”
The research reveals three primary ways that private operation and management of water systems can negatively affect workers and communities:

• Corporate utility takeovers lead to an average job loss of 35 percent.
  
• Workers earn 7.4 percent less at private utilities and accrue fewer benefits than their public sector counterparts.
  
• Union density is 15 percent lower in private utilities than in publically owned ones and management aggressively impedes union organizing in private utility systems.
  

Water Privatization Threatens Workers, Consumers and Local Economies is available online at: http://www.foodandwaterwatch.org/water/pubs/reports/water-privatization-threatens-workers-consumers-and-local-economies

Food & Water Watch, a nonprofit consumer organization based in Washington, D.C., works to ensure clean water and safe food in the United States and around the world.  We challenge the corporate control and abuse of our food and water resources by empowering people to take action and transforming the public consciousness about what we eat and drink.  For more information, visit www.foodandwaterwatch.org.