Abstract
ABSTRACTBerlin, Germany used a public sector restructuring and partial privatization scheme to reduce labour costs and promote process innovation in its transit system. Utilizing financial and operational data, we find the partial privatization reduced wages and benefits, but a subsequent unionization effort eroded many of the labour cost savings. We find restructuring of the public sector portions of the service was more effective than the privatization in promoting labour shedding and in designing route restructuring to reduce system costs while enhancing customer satisfaction with transit services. This case study suggests mixed public‐private firms may be less important as a means to harness the benefits of private sector management and more important as a means to challenge labour rights.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
