Read the resource material and consider your own experience. Then discuss whether state- or municipally-owned enterprises behave differently from privately-owned companies towards their workforce.

Consider which of the following factors make a difference:

• Public sector companies are usually monopolies, not subject to competition
• Governments and municipalities are susceptible to political pressure
• Trade unions are usually stronger in the public sector
• State/municipal companies are local, whereas multinationals are usually foreign
• Public sector companies are accountable to politicians for policies, not to private shareholders.

Consider which areas are most affected by the difference in ownership:

• Security of employment
• Pay and conditions
• Trade union power and influence