Labor Issues in Infrastructure Reform: A Toolkit

A universal concern in reforms involving private participation in infrastructure is the effect such reforms have on labor. Fears of job loss and changes in employment status have often led enterprise workers and unions to be among the most vocal and organized opponents of privatization and to take actions that delay or block reforms. Many developing country governments have been reluctant to undertake reforms because of labor opposition and the political costs involved. Such difficulties are often compounded by concerns about the social impact of reforms, particularly in countries where social safety nets and labor markets are lacking.

It is thus important that ways be found to deal with labor issues in infrastructure privatization. The objective of the Toolkit, which includes a CD-ROM, is to provide practical tools and information to help policy makers and practitioners deal with these sensitive issues. The Toolkit helps governments identify and select appropriate strategies and approaches, offers guidelines for design and implementation based on best practice and actual experience, and indicates the factors influencing the choice of strategy and options. The Toolkit is illustrated with examples, checklists, and templates that walk decision makers through best practice methodologies. Users of the Toolkit should be better placed to understand the benefits and risks of dealing with labor issues and choose among available strategies and options.