Fired for productivity in Morocco

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In Morocco, the Social Watch team informs, the kingdom’s supreme auditing body has reported a systematic lack of compliance with their contractual obligations by private providers of public services in water, electricity and sanitation: In the city of Tangier, the “Amandis” Group, affiliated to the French group “Veolia”, carried out less than one third of its commitments during the first five years of its operations. In Casablanca, only 45,806 ‘social connections’ (benefiting people in poverty) were carried out in 10 years (1997-2006) out of 90,000 promised by the French company Lédique of the Suez group.

Labour productivity did improve under PPPs (locally known as ‘authorized concessions’) in the water and power distribution as well as the wastewater management sectors. However, the increase in productivity was mainly due to the layoffs of about 20 percent of the workers, thus reducing the number of employees per 1,000 connections. In contrast, independent agencies have been able to achieve greater improvement in labour productivity compared with companies under 'authorized concessions' without resorting to layoffs, thus undermining the claim of greater effectiveness of PPPs.

Labour productivity did improve under PPPs (locally known as ‘authorized concessions’) in the water and power distribution as well as the wastewater management sectors. However, the increase in productivity was mainly due to significant worker layoffs of about 20 percent of the workforce, reducing to half the number of employees per 1,000 connections. In contrast, independent agencies have been able to achieve greater improvement in labour productivity compared with companies under authorized concessions without resorting to layoffs, thus undermining the claim of the concessions greater effectiveness and efficiency.

Source: Morocco National Report 2017, Social Watch Report 2017.