Prison worker and public service representatives are celebrating the de-privatisation of Junee prison as a "massive win" for NSW.
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The United Workers Union (UWU), who represent workers at the correctional centre, said operator GEO had understaffed the facility, leading to safety concerns.
UWU executive director Godfrey Moase said essential services should be kept in public hands.
"For too long, funding for public services like this have been drained from the state to line the pockets of shareholders in New York, London and elsewhere around the world. This profiteering by private companies has been at the expense of essential workers and the community at large," he said.
"The idea that private corporations can bring innovation to the management of correctional facilities is absurd. We need to make sure that there is sufficient funding and support so workers can ensure a safe environment for everyone.
"Between now and 2025, United Workers Union looks forward to working with Minister Chanthivong to ensure there is a safe and smooth transition for the 340 workers at Junee, the public and all relevant stakeholders."
UWU members at the Junee prison walked off the job multiple times in April over a protracted pay dispute.
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GEO has operated the facility since its opening in 1993, and is the town's biggest employer.
The Junee jail has been under scrutiny in recent years for underpaying staff, "breeding crime", preventable prisoner deaths, and allowing unacceptable staff behaviour.
GEO lost the contract to operate Parklea Prison in 2018, after a series of embarrassing incidents including a prisoner stealing plans for a new maximum security wing.
In a statement, GEO defended their record in Junee.
They said they had implemented a broad range of innovations at the centre that resulted in a safer, more secure centre that provided better outcomes.
![About 60 Junee Correctional Centre officers protested over a tense wage dispute in April. File picture About 60 Junee Correctional Centre officers protested over a tense wage dispute in April. File picture](/images/transform/v1/crop/frm/200569959/3e4d4135-4fd7-4645-b50b-b85ce06df8fe.jpg/r53_0_1146_616_w1200_h678_fmax.jpg)
"More than a custodial environment, GEO has implemented a broad range of innovations at the centre, to ensure people in custody could access a vast range of life-changing initiatives towards reducing recidivism," they said.
"These include education, vocational skills development, family support, counselling, and drug and alcohol programs.
"This is part of GEO's Continuum of Care model for delivering correctional services - from a person's reception to their release."
The Public Service Association of NSW (PSA) said privatised prisons result in unsafe conditions for prison officers, poor outcomes for prisoners, and heavy costs to the taxpayer.
PSA general secretary Stewart Little said it was excellent that the government had recognised the privatisation of prisons as a policy failure.
![Junee Correctional Centre. File picture by Les Smith Junee Correctional Centre. File picture by Les Smith](/images/transform/v1/crop/frm/200569959/d22e4f9e-840b-41d7-a532-8e88b39bbf60.jpg/r0_0_1200_675_w1200_h678_fmax.jpg)
"As our union said from the very start, privatising prisons is a fundamentally stupid idea. You can't squeeze a profit from a prison unless you cut corners on safety, on wages, and on rehabilitation," he said.
"Time and again we have seen private operators understaffing their prisons to save on wages, which means more assaults on prison officers and more prisoner on prisoner violence.
"Like the police and the courts, prisons are an integral part of the justice system, and they belong in public hands."
PSA president and senior correctional officer Nicole Jess said the announcement of the reform would come as a massive relief to prison officers.
"I talk to prison officers every day. Those who work in private prisons universally report poor outcomes for both prison officers and for prisoners," she said.
"All the money that we save from not having to pay profits to private providers should now go back into supporting prisoners rehabilitation."
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