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The liberalization of public services: company reactions and consequences for employment and working conditions

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Article
H

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

EU countries

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. "

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