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...
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| Format: | Viewpoint |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/1999/01/12119803/labor-redundancies-privatization http://hdl.handle.net/10986/11505 |
| Summary: | 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. |
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