Privatization of Rede Ferroviária Federal, Sociedade Anonima: The People Aspects
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Case Details:
Case Code : HROB139
Case Length : 08 pages
Period : 1992-2000
Pub Date : 2011
Teaching Note : Not Available
Organization : Rede Ferroviária Federal / Sociedade Anônima
Industry : Transportation / Railways
Countries : Brazil
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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“The strategy to deal with the excess labor had to be subtle. There were significant differences in labor productivity across RFFSA’s regions and uniform cuts across the board would not make sense.”
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- Estache, Schmitt de Azevedo, and Sydenstricker, 2000.
Introduction
In the year 1992, the government of Brazil decided to privatize Rede Ferroviária Federal Sociedade Anônima (RFFSA), the ailing public sector rail transport company. To bring the RFFSA back to profitability, the government planned to cut costs through labor reduction. The restructuring of the company involved workforce restructuring and also decisions on incentive schemes and training and development of those who had been laid off as well as of those who had been retained...
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