Privatization of Rede Ferroviária Federal, Sociedade Anonima: The People Aspects

<< Previous

Excerpts

During the 19th century, the rail transport system of Brazil was in a fragmented state with most of the railway companies being owned and operated by British and French concessionaires. To ensure operational efficiency, the government nationalized the rail transport system in 1957 and formed Rede Ferroviária Federal Sociedade Anônima (RFFSA), a freight rail transport company, by amalgamating 18 independent railway companies...

In 1992, the RFFSA was included in the Programa Nacional de Desestatização, ensejando studies, promoted by the Banco Nacional de Desenvolvimento Econômico e social (BNDES is also referred to as Brazilian Development Bank)... The Initiatives Undertaken The RFFSA chartered a staff reduction program that included downsizing of 18,000 employees within three years, training and outsourcing to improve staff productivity, and providing severance payments in order to minimize the social cost...

The staff reduction program had positive results. The early retirement program introduced by the company proved successful with more employees opting to retire rather than go in for voluntary separation incentives (Figure II for workforce reduction plan vs reduction implemented as on 1999)...

Many experts opined that downsizing was important in public sectors that were mired in red-tape, bureaucracy, and overstaffing, especially in developing nations. However, one of the major hurdles to downsizing in the public sector was the high costs involved in staff reduction...

---

Custom Search

---

Introduction to Human Resource Management Textbook Textbooks Collection	Introduction to Human Resource Management Workbooks Collection	Case Studies in Human Resource Management Volume V Case Study Volumes Collection