Re:G4S is just the latest in a long line of outsourcing disa...
by michaelt on Saturday July 14, 2012 @10:51AM
(#4244308)
I think what rwmj is saying is:
State total cost = State front line workers' salaries + State overheads
Private sector total cost = Private sector front line workers' salaries + Private sector overheads + Profit.
Overheads are everything from paddy wagons to radios to uniforms to back office staff to police horses loaned to Rebekah Brooks to the G4S CEO's £830K/year salary. Private sector firms will presumably only bid on a contract if the profit is positive, I'd agree that's a truism. But is the profit positive because the private sector total cost is higher, or because the private sector front line workers' salaries are lower, or because the private sector overheads are lower?
State total cost = State front line workers' salaries + State overheads Private sector total cost = Private sector front line workers' salaries + Private sector overheads + Profit.
Overheads are everything from paddy wagons to radios to uniforms to back office staff to police horses loaned to Rebekah Brooks to the G4S CEO's £830K/year salary. Private sector firms will presumably only bid on a contract if the profit is positive, I'd agree that's a truism. But is the profit positive because the private sector total cost is higher, or because the private sector front line workers' salaries are lower, or because the private sector overheads are lower?
I think that's what rwmj wants evidence of.