| Authors: | Oddgeir Osland, Merethe Dotterud Leiren |
| Report nr: | 896/2007 |
| ISBN: | 978-82-480-0762-3 |
| ISBN (digital version): | 978-82-480-0763-0 |
| Language: | Norwegian |
| Attachments | Hele rapporten Sammendrag |
In this project we study the effects of introducing employees’ rights in the event of transfer of undertakings (VO) in competitive tendering of public transport services. We find that the effects depend on the labour market, tariff regulations, education requirements, competitive relations such as entry barriers, and different procurements and contracts established prior to the transfer of service to the winner of a competitive round. These conditions vary among the sectors; public transport at land, sea, and railway. We argue that for the employees, VO strengthens individual employment relations and employees’ negotiating position. For operators VO implies a restricted employment policy, increased costs of lay-off in situations of excessive employees, and increased costs of education because of i.e. new material. The Public Transport Authority will experience increased administrative costs due to collection of information. This will, however, amount to a marginal part of the administrative costs. More important are increased costs due to bidders’ potentially rising costs.
