Monday, March 09, 2015



IWS Documented News Service


Institute for Workplace Studies-----------------Professor Samuel B. Bacharach

School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies

Cornell University

16 East 34th Street, 4th floor--------------------Stuart Basefsky

New York, NY 10016 -------------------------------Director, IWS News Bureau


NOTE: Funding for this service ends on 31 March 2015. Postings will end on this date as well.


European Foundation for the Improvement of Living and Working Conditions (Dublin Foundation)

European Monitoring Centre on Change (EMCC)

European Restructuring Monitor (ERM)




[full-text, 132 pages]



The European Restructuring Monitor’s annual report for 2014 explores the rapid transformation of the public sector in Europe since the onset of the financial crisis in 2008. Initially, employment expansion in the sector helped to stabilise Europe’s economy while the private sector suffered severe job losses. However, subsequent austerity measures (or fiscal consolidation) have brought in their wake widespread restructuring in the public sector. Hiring freezes have meant the public sector workforce has shrunk and become significantly older, with more female workers. Lack of job security means working in the public sector is no longer quite as attractive. More restructuring will undoubtedly occur, and it is vital that those involved in its planning develop a more forward-looking, anticipatory strategy, to soften the blow for those workers who leave and to enhance conditions for those who stay.



Executive summary 1

Introduction and summary 5

Part A: Recent labour market trends

Chapter 1: Labour market and restructuring trends 13

Background 13

Restructuring and employment shifts by economic sector 16

Flows out of employment and reasons why 21

Data and methodology 21

General trends 23

Reasons for the transitions from employment to non-employment 25

Conclusion 30

Part B: Restructuring in the public sector

Introduction 35

Chapter 2: Mapping restructuring in the public sector 41

Descriptive statistics 41

Characteristics of public services employment 41

Extent of public services/public sector employment 43

Recent employment trends in the main public service sectors 46

Qualitative implications of recent employment shifts in public services 49

Recent restructuring in the public sector – evidence from the ERM 52

Chapter 3: Motives for restructuring in the public sector 57

Impact of austerity measures 58

Impact of reforms and efficiency drives 60

Demographic factors 61

Chapter 4: Processes and actors 63

Financial agencies 63

International actors 64

Role of trade unions 65

Role of citizens 67

Role of ex-ante impact assessments 68

Chapter 5: Restructuring practices 71

Introduction 71

Quantitative adjustments on wages and working time 75

Quantitative adjustments on headcount 77

Phased/early retirement 78

Restructuring tools as an alternative to quantitative adjustments 80

Privatisation/Outsourcing/External service delivery 85

New forms of employment within the public sector 88

Chapter 6: Effects of public sector restructuring on stayers and leavers 93

Introduction 93

Impact of public sector restructuring on ‘stayers’ 94

Impact of job loss for the dismissed employees 99

Chapter 7: Conclusions 105

Bibliography 109

Annexes 115


This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.










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