Public Services International Research Unit
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Activity 5. 3: Restructuring and competition



FOCUS

To consider how competition differs from privatisation

To examine the possible consequences for companies and for employees and consumers

To consider the possible problems of competitive tendering

TASKS:

(A) Read the background papers on energy competition. Discuss the following questions:

  • How does the introduction of competition affect employees?
  • Why do companies seek mergers, alliances, long-term supply contracts and 'managed' prices in the electricity pool?
  • What are the possible dangers and benefits for trade unions and employees?
  • What strategies could a trade union adopt to influence the outcome?

Or

(B) You represent workers in a water company which has decided to invite competitive tenders for maintenance work. The company says they will evaluate the tenders against the present inhouse service, which can win if it is cheapest. How do you respond? Consider the following issues:

do you agree to reduce the level of employment, pay or conditions?

what would happen to the workers if a private contractor wins?

What can you do to prevent loss leader bids? Or to alter the basis on which the company makes its decision?

RESOURCES:

TIME

1 hour