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Labor Redundancy, Retraining, and Outplacement during Privatization : The Experience of Brazil's Federal Railway

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dc.contributor.authorEstache, Antonio
dc.contributor.authorSchmitt de Azevedo, Jose Antonio
dc.contributor.authorSydenstricker, Evelyn
dc.date.accessioned2015-01-20T16:57:47Z
dc.date.available2015-01-20T16:57:47Z
dc.date.issued2000-10
dc.description.abstractOne of the most complex challenges of infrastructure privatization is its impact on employment. Often (but not always) private operators' main approach to cost-cutting is labor reduction. Private operators cannot afford the low levels of labor productivity typical in public companies if they are to be competitive and to deliver on their contractual obligations to provide cheaper, more reliable infrastructure services. But labor issues are so sensitive that government's early, direct involvement is seen as a way to address what potential investors see as a risk of privatization as well as to address the social concerns of the population, including the workers. When Brazil's Federal Railway was privatized, the team in charge of privatization made a significant effort to complement the incentive for voluntary reduction with an elaborate menu of training options. The authors describe this experience in dealing with labor redundancy problems. They discuss the design of the program, highlight the connections between its components, and assess the program's achievements. All things considered, they conclude, this staff reduction program was reasonably successful. The aimed-for improvements in productivity were achieved without major problems through a government-stimulated and -sponsored combination of early retirement and voluntary retrenchment. The concessionaire was willing to make quick decisions about the number of involuntary retrenchments it wanted to make, which helped sustain the momentum created by the government's prompt implementation of its own decisions and the fair treatment of workers. The main problems came from the underestimate of time needed to agree on the strategy for implementing the training and outplacement programs. Informal evidence suggests that most workers found new jobs before many of the training programs were available. And the strategy adopted gave workers a good incentive (one month's pay) to sign up for the courses but provided little incentive for workers to show up, since they were paid up front.en
dc.identifier.doi10.1596/1813-9450-2460
dc.identifier.urihttps://hdl.handle.net/10986/21296
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 2460
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectLabor redundancy
dc.subjectRetraining
dc.subjectOutplacement
dc.subjectPrivatization
dc.subjectRailway sector
dc.subjectReduction in force
dc.subjectTraining programs
dc.subjectInfrastructure privatization
dc.subjectLabor productivity
dc.subjectLabor redundancy
dc.subjectEarly retirement
dc.subjectaccidents
dc.subjectaccounting
dc.subjectassets
dc.subjectauctions
dc.subjectbalance sheet
dc.subjectdebt
dc.subjectdecision making
dc.subjectdiscussions
dc.subjectemployment
dc.subjectemployment contracts
dc.subjectemployment opportunities
dc.subjectemployment policy
dc.subjectfixed costs
dc.subjectgovernment intervention
dc.subjecthousing
dc.subjectintervention
dc.subjectjob search assistance
dc.subjectjobs
dc.subjectlabor law
dc.subjectlabor market
dc.subjectlabor markets
dc.subjectLabor redundancy
dc.subjectLayoff
dc.subjectlayoffs
dc.subjectlegislation
dc.subjectManagers
dc.subjectnew entrants
dc.subjectoutplacement
dc.subjectoutplacement assistance
dc.subjectpenalties
dc.subjectprivate concessionaires
dc.subjectprivate sector
dc.subjectprivatization
dc.subjectProfessional training
dc.subjectpublic enterprises
dc.subjectrecruitment
dc.subjectReduction In Force
dc.subjectredundant workers
dc.subjectreorganization
dc.subjectretirement
dc.subjectsavings
dc.subjectsavings accounts
dc.subjectsocial needs
dc.subjectSocial Security
dc.subjectstaff
dc.subjectstaff productivity
dc.subjectstaff retrenchment
dc.subjecttermination
dc.subjecttraining courses
dc.subjectTransport
dc.subjectturnover
dc.subjectunemployment
dc.subjectunions
dc.subjectwages
dc.titleLabor Redundancy, Retraining, and Outplacement during Privatization : The Experience of Brazil's Federal Railwayen
dspace.entity.typePublication
okr.crossref.titleLabor Redundancy, Retraining, and Outplacement during Privatization: The Experience of Brazil's Federal Railway
okr.date.disclosure2000-10-31
okr.date.doiregistration2025-04-10T10:53:36.463974Z
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.globalpracticeTransport and ICT
okr.globalpracticeSocial Protection and Labor
okr.guid120781468744103747
okr.identifier.doi10.1596/1813-9450-2460
okr.identifier.reportWPS2460
okr.language.supporteden
okr.region.administrativeLatin America and Caribbean
okr.region.countryBrazil
okr.topicFinance and Financial Sector Development::Banks & Banking Reform
okr.topicHealth, Nutrition and Population::Health Monitoring & Evaluation
okr.topicHealth, Nutrition and Population::Public Health Promotion
okr.topicSocial Protections and Labor::Labor Policies
okr.topicSocial Protections and Labor::Labor Standards
okr.topicUrban Development::Municipal Financial Management
okr.unitGovernance, Regulation, and Finance Division
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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