Industrial relations reform

One reason for increased efficiency under a PPP is the potential for industrial relations reform in the provision of the relevant services. As with other aspects of a PPP, the SPV's investors and contractors are financially motivated to find efficiencies in their industrial relations arrangements. The scope for such efficiency gains tends to be greater when the infrastructure is operated or maintained by the private sector as the private sector is not as constrained as government in the terms on which it can employ workers to provide the necessary services.