The liberalization of public services: company reactions and consequences for employment and working conditions
Flecker, Jörg ; Hermann, Christoph
Economic and Industrial Democracy
2011
32
3
August
523-544
employment ; labour relations ; private ownership ; public service ; work organization ; working conditions
Government and public administration
http://dx.doi.org/10.1177/0143831X10389201
English
Bibliogr.
"This article analyses how companies that provide public services respond to liberalization, privatization and marketization. The empirical research is based on 23 company case studies from four sectors and six countries. The case studies involved 185 interviews with managers, trade union and works council representatives and workers. Company reactions include mergers and acquisitions, internationalization and the diversification of supply; the diversification of customer relations, including new pricing policies; a reduction of production costs through concentration, outsourcing and the introduction of new technology; and the reduction of employment and the payment of lower wages (through lower wages for new employees, the creation of independent subsidiaries and outsourcing). Overall, the case studies show that the main goal, the reduction of production costs, has been achieved at the cost of workers, many of whom have experienced liberalization and privatization as the deterioration of employment and working conditions. The impact on productivity and quality were mixed. "
Paper
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