Two local nonprofit agencies have expressed interest in taking over a Jackson County program for at-risk moms and babies.

However, the employees’ union also gave notice it intends to compete to continue providing the Healthy Start service.

Community Works and La Clinica del Valle Family Health Center, both of Medford, responded to requests for qualified providers to run the local branch of the state program aimed at vulnerable first-time mothers and babies.

County Health Director Hank Collins decided in April to subcontract the program to nonprofit providers to cut employment costs. The move is aimed at saving the county money by transferring union employees to private jobs with lower pay and fewer benefits.

By using Oregon’s intergovernmental transfer act, Collins estimated he eventually could save about 40 percent on salaries and benefits through outsourcing.

If the move is successful, it could lead to similar changes for other Health and Human Services programs, he said.

However, officials at SEIU Local 503 strongly oppose the move, saying it violates collective bargaining agreements for nearly 700 local union members. The Healthy Start plan would outsource six employees with more than 70 years of combined experience, said Steve Neuberger, a senior organizer.

Specific bids to provide the service will be accepted in the next few weeks. The program could be subcontracted by fall, Collins said.

Union officials are working to craft a proposal that would allow employees to maintain the service, said Neuberger. It was not clear whether wage and benefit concessions would be part of any arrangement.

Community Works responded to the request for qualified providers in part to see whether the transfer would work, said Arnie Green, agency director. La Clinica already contracts with Jackson County to provide part of the state Healthy Start program that targets Hispanic mothers and children.

The issue raises larger public policy questions of who should provide social services and how they should be compensated, Green said.