The consequences of neoliberal policies in education are controversial. Based on the micro-political approach, this study had two aims: (1) to examine teachers' attitudes toward the effect of privatization on inequality and educational improvement; and (2) to examine the link between teachers' positions of power in school and their attitudes toward privatization. A questionnaire was administered to high school teachers in Israel. Three groups of teachers were defined: supporters, opponents, and those who held mixed attitudes toward privatization. The findings revealed that the controversy regarding privatization reflected the power relations within schools, thus limiting teachers' ability to counter this policy. (Contains 14 notes, 3 tables, and 1 figure.)