Labor

Public authorities in this region are usually restricted to hiring relatively higher wage, union labor. If private operators are permitted to lower the number of staff or hire non-union employees, the windfall revenue to the State may be increased. However, this may conflict with State labor policies, lead to public disapproval, and potential litigation. Again, a State policy of full disclosure early on can help lead to an optimal result. Explicit labor policies should be built into the PPP, which will, in turn, be reflected in the amount the State receives from the transaction.