HYBRID FIRMS AND TRANSIT DELIVERY: THE CASE OF BERLIN. (March 2014)

• Record Type: Journal Article
• Authors: SWARTS, Douglas; WARNER, Mildred E.; Marra, A.; Cruz, N.F.; Fecher, F.; Marques, R.C.
• Is Part Of: Annals of public and cooperative economics. Volume 85:Number 1(2014:Mar.)
• Page Start: 127
• Page End: 146
• Publication Date: 2014-03
• Subjects: Cooperative societies -- Periodicals; 336
• DOI: 10.1111/apce.12026
• Languages: English
• ISSNs: 1370-4788

Abstract

<abstract abstract-type="main" xml:lang="en"> <title>ABSTRACT</title> <p>Berlin, Germany used a public sector restructuring and partial privatization scheme to reduce labour costs and promote process innovation in its transit system. Utilizing financial and operational data, we find the partial privatization reduced wages and benefits, but a subsequent unionization effort eroded many of the labour cost savings. We find restructuring of the public sector portions of the service was more effective than the privatization in promoting labour shedding and in designing route restructuring to reduce system costs while enhancing customer satisfaction with transit services. This case study suggests mixed public‐private firms may be less important as a means to harness the benefits of private sector management and more important as a means to challenge labour rights.</p> </abstract>