Virginia Overland Transportation - Reverse Privatization

Reverse Privatization

Virginia Overland's labor problems and NLRB hearings were closely watched by the public school officials from Petersburg and Hopewell. Two years after winning the election and remaining non-unionized, at the expiration of the current contract period in 1989, the largest portion of its services were assumed by self-operation by Petersburg Public Schools in 1989. Another smaller contract operation for nearby Hopewell Public Schools also converted to self-operation in 1996. The only other public school bus contract in Virginia at Norfolk (operated by Laidlaw Transit) had also converted to self-operation in 1991.

The 3 school division conversions, at Petersburg, Norfolk and Hopewell, were urged by Virginia Department of Education officials as "cost-saving". The contracting companies unsuccessfully disputed the state's financial calculations and cost allocations for the reverse privatizations, which effectively ended all public school bus contracting in Virginia at the time.