Australian Union Secures Prison Remunicipalisation, Defeats Privatisation

In early March, the NSW government announced its decision to bring Parklea Correctional Centre back under public control. The facility had been privatised in 2009, given to a US-based multinational company. Since then, the Public Service Association of NSW has been actively campaigning for its reintegration into the public sector — a victory that has now been achieved.

On 2 March 2025, the New South Wales government, led by Chris Minns, anniunced the return of Parklea Correctional Centre in public hands. The facility was first outsourced in 2009 to GEO group. A US-based company MTC took charge in 2009 after it was awarded a contract of AUD 1.3 billion (USD 821 million). The contract was awarded despite the company having compelling evidence of riots and bribery in the US, where it had marred its business.

Since 2009, Public Service Association of NSW had been campaigning against privatisation of the prison facility. It not only harmed the rights of the workers, it also transferred public money to big corporations.

"Remunicipalisation of Parklea Correctional Centre marks a big victory in the Trade Union movement globally. In rare circumstances we hear reversal of privatisation and facilities coming back to public. However, this trend is increasing due to the failure of privatisation in decent service delivery. We congratulate PSA for this phenomenal victory," said Kate Lappin, Regional Secretary, PSI Asia Pacific.

Following is the Press Release by PSA:

The PSA CPSU NSW welcomes the 2 March announcement by the Minns Labor Government that Parklea Correctional Centre will be returned to public hands in 2026.

“From the moment Parklea Correctional Centre was privatised in 2009, our union has campaigned for what is right: the return of the jail to the people of NSW and away from the failed Prison for Profit model that fails staff and taxpayers,” said PSA General Secretary Stewart Little.

“Today’s announcement shows the State Government is listening to our voice.”

The Parklea decision is good news for the community and is certainly good news for our members who work in the prison. They will be better paid, work in safer conditions and have better chances of promotion once they are employed in the state-wide corrections system.

It’s good news for the taxpayer, who will no longer be propping up outsourcing giants such as MTC  that operate to benefit overseas shareholders rather than the people of NSW.

The welcome news from Parklea follows last year’s decision by the government to listen to the PSA and hand control of Junee Correctional Centre to Corrective Services NSW from 1 April 2025.

The PSA will always campaign against the sell-offs that have done so much damage to our state. We will continue to fight for the return to government control of the services privatised in the reckless frenzy of sell-offs under the O’Farrell, Baird, Berejiklian and Perrottet governments.

For years we have been telling the state that privatisation hurts everyone. We are glad we have a government that is listening to us.

More resources:

Press Release on PSA website

PSA General Secretary, Stewart Little, speaking to the media