To be fair, privatization isn't quite as completely negative as the videos say. For instance, partial privatization--in the form of contracting out services--has worked for Toronto and York, according to an article in the Toronto Star. But putting aside to the standard arguments in favour of privatization--namely, that private owners are more innovative and less bureaucratic, and thus (the reasoning goes) more able to generate cost savings--consider this quote, also presented in the above Star article, from Marie Chapple of the Phoenix Public Transit Department:
“As we reduce service, we will reduce employees. Through the private contractor, it’s easier to expand and reduce staff,” she said.
Emphasis mine. In Ottawa, many of the arguments for privatization of OC Transpo seem to go back to the labour costs for bus operators. And basically, the idea is that the city--for political as well as ethical reasons--isn't as keen on holding a hard-line or hiring 'scabs' to bring down labour costs as a private owner might be.
But is this a good thing? It's certainly idealistic, but it would be a lot better for all involved to reach a mutually acceptable salary structure, instead of contracting out services--which, it could be argued, essentially contracts out the unpalatable responsibility of cutting costs by firing people.