Labor Toolkit

Labor Toolkit: Framework and Overview

A universal concern in infrastructure reforms is the effect such reforms have on labor. State-owned infrastructure firms often employ more people than required for efficiency, and often under favorable terms and conditions of service, leading to lower labor productivity and higher labor costs than private employers would bear. Some reform, in particular those involving private participation in infrastructure (PPI), may thus prompt surplus labor and changes in working conditions as governments adjust the work force to prepare for PPI, or as new owners or operators introduce efficiency improvements and expose enterprises to greater management discipline, new technologies, and increasing competition.

CONTENTS

MODULE 1
Labor Toolkit: Framework and Overview

Framework

Objectives

Structure of the Toolkit

Support for and Contributions to the Toolkit

Overview

Labor Issues in Infrastructure Enterprises

Labor Impacts of PPI

Dealing with Labor Issues in PPI

Defining Objectives

Assessing the Size and Scope of Labor Restructuring

Staff Audits

Benchmarking

Work Force Analysis

Developing Strategies and Options for Labor Restructuring

Timing and Sequencing Issues

Restructuring Options

Developing Key Elements of a Labor Program

Severance Payments

Pension Arrangements

Redeployment Programs

Employee Share Ownership Plans

Managing the Restructuring Process

Engaging with Stakeholders

Implementation Arrangements

Monitoring and Evaluating LaborPprograms

Objectives

Concepts and Approach

Integrating Labor Programs in the PPI process: A Road Map

Phase 1: Initial Assessment

Phase 2: Design of the Labor Program

Phase 3: Implementation

Phase 4: Monitoring and Evaluation

Material and Sources

Background Overview and Articles

PPIAF Case Studies of Labor Issues in PPI

Web Sites

References

FIGURES

Figure 1.1: Organization Chart for a PPI Team (Sample)

Figure 1.2: Road Map for Labor Adjustment

BOXES

Box 1.1: Technology and Reform in Ports

Box 1.2: Argentina Rail: Crisis and Reform

Box 1.3: Evidence of a Public Sector Wage Premium

Box 1.4: Labor Market Flexibility and Work Force Adjustment-A Snapshot in Estonia and Slovenia

Box 1.5: Generic Labor Benchmarks

Box 1.6: Brazil-Work Force Analysis in Rail Privatization

Box 1.7: World Bank Support for Severance

Box 1.8: South Africa-Pensions at Johannesburg Water Company

Box 1.9: Bolivia's Capitalization Program

Box 1.10: Brazil Rail-Pension Reform and Labor Adjustment

Box 1.11: Active and Passive Labor Market Programs

Box 1.12: Malawi-Experience of Consulting with Labor in Privatization

Box 1.13: Key Points for Stakeholder Analysis

Box 1.14: Côte 'd'Ivoire Railways-Participatory Processes

Box 1.15: Port of Santos, Brazil-The Special Labor Fund

Box 1.16: British Coal Enterprise-Privatizing Redeployment

Box 1.17: Monitoring vs. Evaluation

Box 1.18: Guidelines for Submissions to Decisionmakers

TABLES

Table 1.1: Standard Severance Formulas-Advantages and Disadvantages

Table 1.2: Benefits and Costs of Participatory Engagement Processes

Table 1.3: Understanding Stakeholder Interests

Table 1.4: Analysis, Monitoring, and Evaluation in Labor Adjustment Programs

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How to Use the Toolkit

Labor Toolkit:
Framework and Overview

Framework

Overview

Defining objectives

Assessing the Size and Scope of Labor Restructuring

Developing Strategies and Options for Labor Restructuring

Developing Key Elements of a Labor Program

Managing the Restructuring Process

Monitoring and Evaluating Labor Programs

Integrating Labor Programs in the PPI Process: a Road Map

Material and Sources

Labor Impacts of PPI

Assessing the Scope of Restructuring

Strategies and Options

Key Elements of a Labor Program

Engaging with Stakeholders

Monitoring and Evaluation

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References

Glossary

Case Studies

Tools

Additional Materials

Web Sites

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