Geneva, 12-16 April 1999

Background

Traditionally organized on the basis of national and local public or private monopolies, water, electricity and gas utilities in the last decade have been facing the challenges of international liberalization, privatization and restructuring. The previous meetings for this sector was held in 1987. In accordance with the ownership structure prevailing in most countries at that time in the utilities sector, it was organized as a Joint Meeting (composed of governments and workers’ organizations representatives) on Employment and Conditions of Work in Water, Gas and Electricity Supply Services. At that Meeting various aspects of the structure of ownership in the utilities industry were already noted and in particular, the emerging trend towards privatization. In its conclusions, the Meeting acknowledged that experience with changes in ownership varied among countries and that while in some cases employment and working conditions remained stable, or had improved, in others they had been adversely affected. Bearing in mind that privatization of utilities can affect the development, delivery, price and quality of services provided, the Meeting concluded that in all such cases of change in ownership, “every effort should be made to protect the rights and interests of workers through negotiation, consultation and collective bargaining”. The Meeting furthermore concluded that regardless of legal status and ownership structure, “the services provided are of such importance that arrangements should be made to make them publicly accountable in accordance with national law and practice”.

The challenges of liberalization, privatization and restructuring have mainly arisen from the need to meet soaring worldwide demand for utility services and the incapacity of the public sector to provide adequate services due to the multiplicity of areas demanding State attention in situations of prolonged economic crisis and hardship. In addition, new technologies, environmental and consumer concerns have increased pressure on the utilities to deliver services which are efficient, clean and above all affordable. Utility transnationals and multi-utilities are also increasingly common, creating new structures and forms of ownership and operation. Indeed, restructuring of the utilities has often preceded privatization in order to make public companies more attractive to potential buyers or operators. The radical changes which have characterized the utilities sector over the past decade are thus reflected in the composition of this Meeting, with the sector being represented for the first time on a fully tripartite basis.

Purpose of the Meeting

The purpose of the meeting was to exchange views on experience in the privatization and restructuring of public utilities and the impact of these processes on employment, workingconditions, human resource development, and service delivery; to adopt conclusions that include guidance for further action; and to adopt a report on the discussion. As a basis for the discussions, the International Labour Office published a book-length report entitled Managing the privatization and restructuring of public utilities (water, gas, electricity). The Report of the Discussion and the Meeting's conclusions are available in the Note on the Proceedings.

Participation

The Meeting was composed of 46 participants, among whom were 17 delegates and advisors from 10 governments; 19 employers' representatives; and 24 workers' representatives and advisors. In addition, there was a representative of the ILO's Governing Body and 29 observers representing other United Nations specialized agencies, international organizations and non-governmental organizations present at the meeting.

Related Meetings and Papers

An earlier monograph as part of a series of research studies was issued in 1998 under the ILO’s Action Programme on Privatization, Restructuring and Economic Democracy (1996-97). Entitled Labour and social dimensions of privatization and restructuring (public utilities: water, gas, electricity), it reviews the experience with privatization and restructuring of water, gas and electricity utilities. Another monograph in French was also published under the same Action Programme entitled Aspects sociaux des privatisations et restructurations: le cas des services d’intérêt général (services de santé, de télécommunications et de distribution de l’eau, du gaz et de l’électricité).

Contact address for more information

Ms. Nona Iliukhina
Industrial Specialist
International Labour Office
4 route des Morillons
CH-1211 GENEVA 22, Switzerland
Tel. +41 22 799 7169 Fax +41 22 799 7046
E-mail: iliukhina@ilo.org or sector@ilo.org