The difference is that with private service providers, the impact of union tactics is reduced because they do not have a monopoly on the service, like public unions.
That isn't true, as the current situation proves. A contract is a contract. Whoever has the contract has a time-specific monopoly. The only real difference between a public service provider and a private one is.....PROFIT!!
If GFL tries to increase their prices to Toronto due to wage cost increases, Toronto can shop for a new provider.
What do you mean "if"? LOL
Or are you the only person in the universe who thinks that ridiculous low-ball quote of theirs is realistic?
And where are all these competitors lying around with the kind of resources to all of a sudden handle half of Toronto's garbage if things go bad with GFL? And if there were, they certainly wouldn't be as cheap as GFL (considering the next lowest bid in the current contract was $3.5 million more than GFL). And it's not like the city is in any position to take back the work....they've been laid off and equipment sold at a loss.
And even if GFL can manage to provide this service without going bankrupt or giving considerably lousy service, it's not like that $11 million savings is real, after you look at apples & apples regarding the real numbers of the contract (adding in the millions of added fees that will go to GFL and subtracting the millions from the old city contract not in the curtsied pickup contract with GFL), plus the fact that there will still be redundant costs to the city for "managing" it (311 calls, etc).
Even if there is an actual saving to the city, what do you think will happen to it? It's a rate-based service, so it has nothing to do with operational budgets or your property taxes, so it can't be used there. You might get a freeze on your annual garbage bin fees.
I'm not necessarily against outsourcing certain public services....I just don't give as much credit to the myth that the private sector is always being more cost efficient, because it's simply not true.
And at the end of the day, if the costs are about the same, I'd rather more of the same money is going into the pocket of a well paid, well benefited public employee, than to a private corporation that needs to pay their employees shit to be competitive with public unions.