Privatization of Rede Ferroviária Federal, Sociedade Anonima: The People Aspects

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Please note:

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.

Case Details:


Case Code : HROB139 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges


Work Force Analysis / Workforce Restructuring
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


This case is about the privatization of the Rede Ferroviária Federal Sociedade Anônima (RFFSA), the ailing public sector rail transport company in Brazil. In the year 1992, the government of Brazil decided to privatize RFFSA.

To bring the RFFSA back to profitability, the government planned to cut costs by means of 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 were retained.


» The issues and challenges related to privatization and the various people aspects that have to be taken care of.

» The issues and challenges involved in workforce restructuring.

» The importance of workforce analysis in identifying the types of employees needed for the future, in making vital decisions on severance schemes and transfers between operating units, and in ensuring that the organization is able to avoid the loss of critical skills.


  Page No.
Introduction 1
About RFFSA 1
Privatization and Workforce Restructuring 2
The Initiatives Undertaken 4
Payoffs of the Incentive Programs 6
Epilogue 7

Key Words:

Workforce restructuring, Workforce analysis, Privatization, Severance schemes, Transfers, Training, Redundancy, Downsizing, Outplacement, Public sector

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