A good understanding of the effects of private participation in infrastructure (PPI) on the work force is essential for managers in the implementing agency. The purpose of this module is to provide the implementing agency with an overview of the empirical evidence about what actually happens to workers in the process of PPI. This is valuable because the implementing agency has to deal with a variety of interest groups holding a range of beliefs and perceptions about what PPI will mean for them. Belief and perception are important because they drive the actions and reactions of all stakeholders and affect the political and labor relations environments. They are often informed, however, by partial, distorted, or even false evidence.
Workers and unions are anxious about the effects of PPI. Popular opinion shares many of those same concerns.
Factors in Employment Reduction
Subcontracting and Outsourcing
Figure 2.1: Employment in Côte d'Ivoire and Burkina Faso Rail, 1980-2000
Figure 2.2: Labor Productivity in South American Rail Companies
Box 2.1: Popular Perceptions of PPI
Box 2.2: Argentina-Job Losses in the Infrastructure Sector
Box 2.3: Employment Reductions in Brazil's Railways
Box 2.4: Union Perceptions of Privatization's Impact in Ports
Box 2.5: Employment Growth in Mexican Ports
Box 2.6: ILO Analysis of the Labor Impact of PPI in the Telecommunications Sector
Box 2.7: Productivity Growth in Latin American Telecoms Following PPI
Box 2.8: Service and Productivity Improvements at Trinidad and Tobago Post
Box 2.9: Municipalization of In-kind Social Benefits in Russia
Box 2.10: Changing Work Practices in Mexico Telecoms
Box 2.11: New Working Practices in Côte d'Ivoire Electricity
Box 2.12: Outsourcing in Argentine Telecoms
Box 2.13: Contracting Out and Equal Opportunities in the United Kingdom
Box 2.14: Key Factors Affecting the Labor Impact of PPI
Table 2.1: Possible Effects of Privatization on Employment in Ports
Table 2.3: Argentina: Restructuring of Electricity Work Force after Privatization
Table 2.4: Employment Reductions in Brazilian Electricity Utilities