Labor Redundancies and Privatization

When state-owned enterprises preparing for privatization have very high levels of redundant workers and when social safety nets and redundancy provisions in labor laws are inadequate or lacking, the political and social implications of layoffs mean that the government should be involved in the design and funding of special programs to deal with unemployment and labor unrest. This note reviews the main elements of such programs severance and retirement benefits, retraining and redeployment support, employee share ownership schemes, and importantly, mechanisms to ensure labor consultation and participation. In many countries these programs need to go hand-in-hand with reforms to expand private labor markets: removing obstacles to job creation, ending restrictions on hiring and firing, and eliminating taxes that raise the cost of labor.

Bibliographic Details

Main Author:	Kikeri, Sunita
Format:	Viewpoint biblioteca
Language:	English
Published:	World Bank, Washington, DC 1999-01
Subjects:	ACTIVE LABOR, ACTIVE LABOR MARKET, ACTIVE LABOR MARKET PROGRAMS, ADVERSE SELECTION, ATTRITION, BANK OPERATIONS, BENEFITS OF PRIVATIZATION, BIDS, CAPITAL GAINS, CONCEPT OF PRIVATIZATION, DEVELOPING COUNTRIES, DIVIDEND, EARLY RETIREMENT, ECONOMIC BENEFITS, ECONOMIC DISTRESS, ECONOMIC RETURNS, EMPLOYEE, EMPLOYMENT LEVELS, EMPLOYMENT PROGRAMS, ENTERPRISE DEVELOPMENT, ENTERPRISE RESTRUCTURING, EXECUTIVE DIRECTORS, FINANCING ARRANGEMENTS, FIRING, FUTURE EARNINGS, HIRING, INNOVATIONS, INSTITUTIONAL CAPACITY, JOB CREATION, JOB SEARCH, JOB SEARCH ASSISTANCE, JOBS, LABOR ADJUSTMENT, LABOR FORCE, LABOR LAWS, LABOR LEGISLATION, LABOR MARKET, LABOR MARKET CHARACTERISTICS, LABOR MARKETS, LABOR OPPOSITION, LABOR PRODUCTIVITY, LABOR REDUNDANCIES, LABOR RELATIONS, LABOR SUPPORT, LABOR UNIONS, LAID-OFF WORKERS, LAYOFFS, METHOD OF PRIVATIZATION, PENSION, PENSION FUNDS, PENSION LIABILITIES, PENSION REFORMS, PLACEMENT SERVICES, POVERTY ALLEVIATION, PRIVATE COMPANY, PRIVATE INSTITUTIONS, PRIVATE INVESTORS, PRIVATE OWNERS, PRIVATE SECTOR, PRIVATE SECTOR DEVELOPMENT, PRIVATIZATION, PRIVATIZATION PROCESS, PRODUCTIVE ACTIVITIES, PUBLIC SECTOR, PUBLIC SECTOR DOWNSIZING, PUBLIC WORKS, RAILWAY WORKERS, REDUNDANCY, REDUNDANT WORKERS, RETIREMENT, RETIREMENT PROGRAM, RETRAINING PROGRAMS, SAFETY, SAFETY NET, SAFETY NETS, SALE OF ASSETS, SALE PRICE, SENIORITY, SERVICE PROVIDERS, SEVERANCE BENEFITS, SEVERANCE PAYMENTS, SHARE OWNERSHIP, SMALL BUSINESS, SMALL BUSINESSES, SMALL ENTERPRISES, SOCIAL FUNDS, SOCIAL SAFETY NET, SOCIAL SAFETY NETS, STAFF, STATE ENTERPRISE, STATE ENTERPRISES, STATE-OWNED ENTERPRISES, TECHNICAL ASSISTANCE, UNEMPLOYMENT, UNEMPLOYMENT INSURANCE, VOLUNTARY DEPARTURES, WAGES, WORKER, WORKERS, WORKING CAPITAL,
Online Access:	http://documents.worldbank.org/curated/en/1999/01/12119803/labor-redundancies-privatization http://hdl.handle.net/10986/11505
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