The issue of what to do with excess labor is critical to the success of any endeavour to improve the transport sector. Failure to reduce overstaffing leads to excessive wage bills. This exacerbates budget deficits and the losses of parastatal enterprises, which leads to cuts in investment or in the purchase of materials designed to reduce costs, further limiting labor productivity. Moreover, because transport employs so many people, labor redundancy in the sector affects not only the agencies or enterprises concerned but the public sector as a whole. This paper offers no blueprint for action, but categorizes the principal causes of redundancy, reviews the measures used to reduce overstaffing, and discusses the issues that have to be addressed.
Municipal Financial Management,Environmental Economics&Policies,Labor Management and Relations,Roads&Highways,Banks&Banking Reform
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