Public sector workers often oppose projected PPP arrangements. There should be early and constant dialogue among the government, the labor unions, and public employees to set out the objectives and strategy for PPP. Information on worker issues should be proactively shared to allay speculation and unfounded concerns. Workers need to be dealt with fairly and either provided with employment opportunities in the new company or given acceptable severance packages.
In working through the labor issues associated with PPP, a legal review is critical. This includes public service acts and regulations, laws specific to the sector and the enterprise, collective bargaining agreements, and any precedents in other sectors.
For employees and unions, the key issues will be:
Redundancies or severance payments. This would include the terms under which employees would be laid off and the opportunity to join a new company if one is being created. Public service employees should be advised whether they are to be transferred to any new entity (and thus, potentially ineligible for severance), whether all employees are eligible for severance and possible rehiring, or whether only certain employees will be eligible for severance and/or opportunity with the new company.
Terms of employment with a new company. Employees will need to know the employment terms, including salary, reporting lines, benefits, security of tenure, and whether accrued pensions and benefits will be transferred.
Retraining. Whether an employee is severed or retained, there will be questions about training opportunities being offered. As soon as possible, an explicit program to retrain severed workers, allow for spin off of certain functions, and/or improve the capacity of retained staff should be implemented.
The way in which worker issues are handled depends almost entirely on local labor law and local precedent. There should be an attempt to clarify, early in the process, what the law does and does not provide for. Otherwise, speculation will be considerable. Workers should be represented in the process as soon as possible and information should be proactively disseminated.