When the broad strategy and options for labor restructuring have been determined, the next step is to develop the main elements of the labor program. Specific approaches to restructuring are bound to vary among countries and enterprises, depending on local circumstances. But labor programs typically include four main components:
Each of these components is discussed in depth in the following sections. At the end of each section is a list of the contents of the CD–ROM that accompanies this Toolkit, a list of pertinent Web sites, and a list of additional relevant materials and sources.
Adverse Selection and Targeting
Addressing Prior Pension Obligations
Pensions and Labor Restructuring
Pensions: Implementation Steps
Design and Implementation of Redeployment Programs
Compensation Packages for Redundant Workers
Shares as an Incentive or Reward
Employee Share Ownership Plans
Figure 5.1: End–of–Service Benefits in Orissa, India
Figure 5.2: Core and Supplementary Elements
Figure 5.3: Moving from Supply–Driven to Demand–Driven Training
Box 5.1: Mexican Railways–The Daily Integrated Salary
Box 5.2: Brazil–Reducing Payments for Older Workers
Box 5.3: Earnings Losses after Retrenchment
Box 5.4: Tanzania–Severance Policies in Port Concessioning
Box 5.5: Problems with Case–by–Case Setting of Severance–Sri Lanka and Zambia
Box 5.6: Challenges of Selection–Guinea and Sri Lanka
Box 5.7: Sri Lanka–Experiences of Selection through Eligibility Criteria
Box 5.8: Chile Rail–Severance Benefits and Rehiring Rules
Box 5.9: Content of a Severance Manual
Box 5.10: Regularizing Casual and Stipendiary Workers in the Orissa Power Sector
Box 5.11: Morocco Rail–An Unsustainable Pension Scheme
Box 5.12: Privileged Pension Rights in Central and Eastern Europe
Box 5.13: Accounting Standards for Defined–Benefit Plans
Box 5.14: Tanzania Telecom–Pension Plan Restructuring
Box 5.15: Japan Railway's Recurring Pensions Challenge
Box 5.16: British Coal–Negotiated Pension Agreements
Box 5.17: South America–Working with Trustees and Pension Advisers
Box 5.18: Brazil Rail–Worker Surveys in a Labor Study
Box 5.19: Ukraine–Profiles of Displaced Coal Mine Workers
Box 5.20: Tanzania–"Invisible" Service Providers
Box 5.21: Bolivia–The Emergency Social Fund
Box 5.22: Job–Search Assistance–Using New Technology
Box 5.23: What Happens in a Job Club?
Box 5.24: Retraining–Chile's Program for Mine Workers
Box 5.25: Malawi–Road Maintenance by Displaced Workers
Box 5.26: Three–Point Checklist for Successful Public Works Programs
Box 5.27: British Coal–Responding to Mine Closure
Box 5.28: Shares as Incentives in Infrastructure Privatization
Box 5.29: Checklist for Successful ESOPs
Table 5.1: Some Examples of Statutory Termination Benefits
Table 5.2: Advantages and Disadvantages of Standard Severance Formulas
Table 5.3: Examples of Severance Formulas and Payments
Table 5.4: Advantages and Disadvantages of Loss–Based Formulas
Table 5.5: Advantages and Disadvantages of Uniform and Case–by–Case Approaches to Severance
Table 5.6: Advantages and Disadvantages of Alternative Selection Approaches
Table 5.7: Summary of Active Labor Market Program Evaluation Results