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A new study from the UK based think tank Catalyst reports that private finance initiatives (PFIs) make money by reducing staff pay and conditions. Proponents of PFIs have long claimed that profits would come from ‘managerial innovation’ and not at the expense of workers. They are wrong.

The study examined P3 prisons hailed as the model for P3s. Wages in the P3 prison are only slightly more than two-thirds the wages in public sector prisons, there are fewer vacation days, and pensions are worse.

For a summary of the study findings click here http://www.unison.org.uk/news/news_view.asp?did=1491

For the full study click here http://www.catalystforum.org.uk/pubs/paper23.html