MOST INDUSTRIAL ACTIVITY BY CORRECTIONAL INMATES IS ESSENTIALLY MEANINGLESS IN BOTH CONTENT AND FOCUS BECAUSE THE PRISON INDUSTRY SUFFERS FROM A MULTITUDE OF GOALS (REHABILITATION AND PUNISHMENT) AND AMBIGUITY OF PURPOSE, AND THE STRUCTURE AND CONTEXT OF MOST PRISON INDUSTRIES, ALONG WITH THEIR TRADITIONALLY LOW RANKING WITHIN THE INSTITUTIONAL HIERARCHY, TEND TO RESULT IN ACTIVITIES THAT ARE OF LITTLE REAL VALUE TO INMATES. BOTH THE CANADIAN FEDERAL AND ONTARIO PROVINCIAL AUTHORITIES HAVE INTRODUCED NEW PROGRAMS TO IMPROVE THE NATURE OF THE INDUSTRIAL SYSTEM. THE JOYCEVILLE INDUSTRIES PILOT PROJECT WAS BASED ON AN INDUSTRIAL MODEL; IT IMPOSED MINIMAL EDUCATION REQUIREMENTS ON INMATES SELECTED FOR EMPLOYMENT, LAYED OFF WORKERS, AND PAID INMATES FOR HOURS WORKED. WHILE THE PILOT REPRESENTS A DISTINCT IMPROVEMENT OVER OTHER INMATE WORK PROJECTS, IT IS WEAKENED BY CONFLICTS INHERENT IN OPERATING AN INDUSTRIAL PROGRAM WITHIN A PRISON SETTING, I.E., INADEQUATE SALES, MARKETING, AND PLANNING ACTIVITIES AND THE USE OF PRISON STAFF AS INDUSTRIAL MANAGERS. THE ONTARIO MINISTRY OF CORRECTIONS HAS IMPLICITLY DECIDED THAT INTRODUCTION OF WORK EXPERIENCE WITHIN A CORRECTIONAL FRAMEWORK IS NOT MEANINGFUL, AND HAS BROUGHT PRIVATE MANAGEMENT TO THE INSTITUTIONS. BUT THIS STEP HAS RESULTED IN GAPS BETWEEN THE GOALS OF PROFIT OF THE PRIVATE ENTITIES AND THE PROVISION OF QUALITY TRAINING AND WORK EXPERIENCE FOR INMATES. THE INITIAL EXPERIMENT WITH PRIVATE MANAGEMENT AT GUELPH ABBATOIR APPEARS TO BE SUCCESSFUL IN SPITE OF THIS GOAL CONFLICT WITH THE KEY ELEMENT BEING THE LABELLING OF INMATES AS MEMBERS OF THE DISADVANTAGED WORK FORCE. THE MODERN PHYSICAL PLANT AT GUELPH MAY ATTRACT PRIVATE EMPLOYERS, BUT WITH THE ABSENCE OF THIS INDUCEMENT, INCENTIVES ARE NOT ADEQUATE. IT IS CONCLUDED THAT THE PRIVATE EMPLOYER OFFERS VARIOUS ADVANTAGES IN THE OPERATION OF A PRISON INDUSTRY SYSTEM, AND A NET POSITIVE GAIN IS APPARENT WHEN USING PRIVATE MANAGEMENT. THE PROBLEM, THEN, IS ATTRACTING PRIVATE EMPLOYERS TO WORK IN A PRISON SETTING. REFERENCES ARE PROVIDED. (AUTHOR ABSTRACT MODIFIED--DAG)