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.