The contract towers are not run nor privately owned by LM. They are contracted to one of three companies; Midwest ATC, Serco, and RVA.
They generally are the lower level, slower facilities. Pay is set by the dept of labor (currently around $26-$28 per hr), and benefits can at times be mediocre at best.
Overall, the contract towers are staffed by either retired military/FAA controllers or by military controllers waiting for a position with either the DOD or FAA.
Yes, the FAA generally has job security, and better benefits (health, life, retirement), but you would probably get a much different answer from one of the former FSS g.
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