Module 1 -- Contents -- ACKNOWLEDGMENTS -- HOW TO USE THE CD-ROM -- MODULE 1 OVERVIEW OF PPIAF LABOR TOOLKIT -- Introduction to the Toolkit -- Objectives -- Structure of the Toolkit -- Support for and Contributors to the Toolkit -- Labor Issues In PPI:An Overview -- Labor Issues in Infrastructure Enterprises -- Labor Impacts of PPI -- Dealing with Labor Issues In PPI -- Defining Objectives -- Assessing the Size and Scope of Labor Restructuring -- Staff Audits -- Benchmarking -- Work Force Analysis -- Developing Strategies and Options for Labor Restructuring -- Timing and Sequencing Issues -- Restructuring Options -- Developing Key Elements of a Labor Program -- Severance Payments -- Pension Arrangements -- Redeployment Programs -- Employee Share Ownership Plans -- Managing the Restructuring Process -- Engaging with Stakeholders -- Implementation Arrangements -- Monitoring and Evaluating Labor Programs -- Objectives -- Concepts and Approach -- Integrating Labor Programs in the PPI Process: A Road Map -- Phase 1: Initial Assessment -- Phase 2: Design of the Labor Program -- Phase 3: Implementation -- Phase 4: Monitoring and Evaluation -- Additional Material (on the CD-ROM) -- Background and Overview Articles -- PPIAF Case Studies of Labor Issues in PPI -- Web Sites -- References -- FIGURES -- 1.1 Organization Chart for a PPI Team (Sample) -- 1.2 Road Map for Labor Adjustment -- BOXES -- 1.1 Technology and Reform in Ports -- 1.2 Argentina Rail: Crisis and Reform -- 1.3 Evidence of a Public Sector Wage Premium -- 1.4 Labor Market Flexibility and Work Force Adjustment-A Snapshot in Estonia and Slovenia -- 1.5 Generic Labor Benchmarks -- 1.6 Brazil-Work Force Analysis in Rail Privatization -- 1.7 World Bank Support for Severance -- 1.8 South Africa-Pensions at Johannesburg Water Company -- 1.9 Bolivia's Capitalization Program.

1.10 Brazil Rail-Pension Reform and Labor Adjustment -- 1.11 Active and Passive Labor Market Programs -- 1.12 Malawi-Experience of Consulting with Labor in Privatization -- 1.13 Key Points for Stakeholder Analysis -- 1.14 Côte d'Ivoire Railways-Participatory Processes -- 1.15 Port of Santos, Brazil-The Special Labor Fund -- 1.16 British Coal Enterprise-Privatizing Redeployment -- 1.17 Monitoring vs. Evaluation -- 1.18 Guidelines for Submissions to Decisionmakers -- TABLES -- 1.1 Standard Severance Formulas-Advantages and Disadvantages -- 1.2 Benefits and Costs of Participatory Engagement Processes -- 1.3 Understanding Stakeholder Interests -- 1.4 Analysis, Monitoring, and Evaluation in Labor Adjustment Programs -- Module 2-7 -- Contents -- MODULE 2 LABOR IMPACTS OF PRIVATE PARTICIPATION IN INFRASTRUCTURE -- Overall Trends -- Employment Impact -- Factors in Employment Reduction -- Rail -- Ports -- Water -- Electricity -- Telecommunications -- Postal Services -- Labor Productivity -- Pay -- Benefits -- Pensions -- Other Benefits -- Work Practices -- Working Conditions -- Subcontracting and Outsourcing -- Gender Impacts -- Summary -- Additional Material (on the CD-ROM) -- Web Sites -- Other Materials and Sources -- MODULE 3 ASSESSING THE SIZE AND SCOPE OF LABOR RESTRUCTURING -- Overview -- Staff Audits -- Objectives -- Scope -- Collecting Personnel Data -- Collecting Information on Skills -- Benchmarking -- What Are Benchmarks? -- Sources of Benchmark Data -- Using Benchmark Measures -- Benchmarking Labor Costs -- Work Force Analysis -- Objectives of Work Force Analysis -- Work Force Analysis Tools -- Who Should Do the Assessments? -- Tools (on the CD-ROM) -- Additional Material (on the CD-ROM) -- Web Sites -- Other Material and Sources -- MODULE 4 STRATEGIES AND OPTIONS -- Restructuring-Who Should Do It? -- Labor Restructuring by the Private Sector.

Labor Restructuring by Government -- A Mixed Approach -- Menu of Options -- Sequencing of Options -- Soft Options -- Payroll Management -- Enforcement of Retirement Age -- Enforcement of Disciplinary Proceedings -- Staff Transfers to Other Public Organizations -- Recruitment and Promotion Freezes -- Advantages of Soft Options -- Workplace Restructuring -- Reducing Working Hours -- Placing Workers on Administrative Leave -- Reorganizing the Work Force -- Restructuring the Enterprise -- Retirement and Redundancy -- Key Considerations in Developing Strategies and Options -- Labor-Related Legislation -- Employee Status Prior to PPI -- Employment Protection in the Bidding Process -- Strategies-A Decision Tree -- Tools (on the CD-ROM) -- Additional Material (on the CD-ROM) -- Web Sites -- Other Material and Sources -- MODULE 5 KEY ELEMENTS OF A LABOR PROGRAM -- Severance -- Statutory Payments -- Contractual Benefits -- Ex Gratia Severance Payments -- Adverse Selection and Targeting -- Implementation Issues -- Tools (on the CD-ROM) -- Additional MateriaL (on the CD-ROM) -- Web Sites -- Other Material and Sources -- Pensions and PPI -- The Pension Challenge -- Types of Pension Plans -- Addressing Prior Pension Obligations -- Pensions and Labor Restructuring -- Future Pension Design -- Pensions: Implementation Steps -- Tools (on the CD-ROM) -- Additional Material (on the CD-ROM) -- Web Sites -- Other Material and Sources -- Redeployment Support -- Design and Implementation of Redeployment Programs -- Counseling -- Job-Search Assistance -- Retraining -- Employee Enterprise -- Job-Creation Initiatives -- Tools (on the CD-ROM) -- Additional Material (on the CD-ROM) -- Web Sites -- Other Material and Sources -- Employee Share Ownership -- Compensation Packages for Redundant Workers -- Shares as an Incentive or Reward -- Employee Share Ownership Plans.

Additional Material (on the CD-ROM) -- Web Sites -- Other Material and Sources -- MODULE 6 ENGAGING WITH STAKEHOLDERS -- Fundamentals of Engagement -- Forms of Engagement -- Designing an Engagement Strategy -- Acquiring Engagement Skills -- Communication -- Objectives -- Preparing a Communication Plan -- Consultation -- Role of Consultation -- Methods of Consultation -- Negotiation -- Steps in Negotiations -- Cooperation -- Cooperation in Practice -- Circumstances that Suit Cooperation -- Tools (on the CD-ROM) -- Additional Material (on the CD-ROM) -- Web Sites -- Other Material and Sources -- MODULE 7 MONITORING AND EVALUATION OF LABOR PROGRAMS -- Overview -- Assessing Financial Returns -- Financial Costs-A Checklist -- Financial Benefits-A Checklist -- Financial Payback Analysis -- Discounted Cash Flow Analysis -- Assessing Economic Returns -- Rationale -- Economic vs. Financial Costs -- Evaluating Labor Market Programs -- Constructing the Counterfactual Analysis -- Assessing the Impact of Redeployment -- Assessing the Effects on Workers' Welfare -- Assessing Overall PPI Benefits -- Monitoring Labor Programs -- Tools (on the CD-ROM) -- Additional Material (on the CD-ROM) -- Web Sites -- Other Material and Sources -- REFERENCES -- FIGURES -- 2.1 Employment in Côte d'Ivoire and Burkina Faso Rail, 1980-2000 -- 2.2 Labor Productivity in South American Rail Companies -- 3.1 Structure of Performance Measures for Utilities -- 3.2 Sample Age Profiles -- 4.1 Restructuring Options-A Typology -- 4.2 An Illustration of Sequencing -- 4.3 Strategic Choices in Labor Adjustment-A Decision Tree -- 5.1 End-of-Service Benefits in Orissa, India -- 5.2 Core and Supplementary Elements -- 5.3 Moving from Supply-Driven to Demand-Driven Training -- BOXES -- 2.1 Popular Perceptions of PPI -- 2.2 Argentina-Job Losses in the Infrastructure Sector.

2.3 Employment Reductions in Brazil's Railways -- 2.4 Union Perceptions of Privatization's Impact in Ports -- 2.5 Employment Growth in Mexican Ports -- 2.6 ILO Analysis of the Labor Impact of PPI in the Telecommunications Sector -- 2.7 Productivity Growth in Latin American Telecoms Following PPI -- 2.8 Service and Productivity Improvements at Trinidad and Tobago Post -- 2.9 Municipalization of In-Kind Social Benefits in Russia -- 2.10 Changing Work Practices in Mexico Telecoms -- 2.12 Outsourcing in Argentine Telecoms -- 2.11 New Working Practices in Côte d'Ivoire Electricity -- 2.13 Contracting Out and Equal Opportunities in the United Kingdom -- 2.14 Key Factors Affecting the Labor Impact of PPI -- 3.1 What's the Minimum Data Set for a Staff Audit? -- 3.2 Nigeria-Conducting Staff Audits in the Civil Service -- 3.3 Middle East Airlines-Skills Mismatch -- 3.4 India-Unions and Reskilling in the Telecommunications Sector -- 3.5 British Rail-Loss of Institutional Memory -- 3.6 Benchmarking Definitions -- 3.7 Kenya-Internal Benchmarking in Power Distribution -- 3.8 Generic Labor Benchmarks -- 3.9 Sample Labor Benchmarks by Sector -- 3.10 Hints and Tips for Using Benchmark Data -- 3.11 Brazil-Work Force Analysis in Rail Privatization -- 4.1 Restructuring by PPI Investors-Argentina and Guyana -- 4.2 Tanzania-Telecommunications Work Force Restructuring -- 4.3 Zambia-Redundancy for All Rail Workers -- 4.4 Philippines-Use of a Mixed Approach through Probationary Employment -- 4.5 South Africa-Phased Reform in Electricity -- 4.6 Jordan-Tactical Staff Transfers at Aqaba Rail -- 4.7 China-Administrative Leave for Workers in State-Owned Enterprises -- 4.8 Argentina-The Success of a Voluntary Approach -- 4.9 Aeromexico-Liquidation and Labor Adjustment -- 4.10 Mexico Rail-How the Legal Framework Changed.

4.11 Argentina-International Standards, National Laws, and Labor Contracts.