Implementation of privatization policy for troubled businesses-- A case study of Taiwan Motor Transport Corp.’s privatization

• Main Authors: Shu-Hsien Lin, 林書賢
• Other Authors: Sou-Shan Wu
• Format: Others
• Language: zh-TW
• Published: 2002
• Online Access: http://ndltd.ncl.edu.tw/handle/20462748221254269051

碩士 === 國立交通大學 === 經營管理研究所 === 90 === When the broader economy is depressed, an operationally sound publicly owned company that wants to privatize ought to use various strategies (such as a foreign share-offering, strategic alliances, or a general release of shares to the public) to find the best way to that goal. Smooth privatization of a troubled publicly owned firm, hemmed in by its straitened circumstances, is many degrees more difficult. The core of our research looked at implementation of the privatization policy for troubled companies. Changes in the implementation measures were investigated in respect to the policy environment, implementing bodies and target groups to understand the implementation problems of the government’s policy of pushing the privatization of troubled companies and also how the government should develop specific and feasible implementation programs so that privatization proceeds well and the interests of workers are protected. Our research discusses, with reference to other related academic papers, the policy implementation abilities of Taiwan’s government. The research was intended to help understand any conspicuous problems with the current implementation of privatization policy. In turn, looking closely at theoretical and practical literature and records in Taiwan and abroad we formulated a concise but as complete as possible analytical framework to investigate implementation of privatization policies, using Taiwan Motor Transport Corp. as an example to corroborate the practicality of this analytical framework. Such a framework is intended to be used as reference by administrative authorities planning implementation measures for the privatization of troubled companies TMTC was completely privatized on July 1, 2001. The privatization implementation measures were constructed around a strategy of workers raising funds to form a new company and inheriting vehicles and routes from the old company. The privatization process proceeded by selling off other assets by tender. Streamlining of the organization and preferential rental conditions were crucial measures intended to hold the company together during the transition and safeguard workers’ interests. This was the government showing new thinking, establishing a new form of privatization, and producing implementation measures that could be fitted to the specific characteristics of individual publicly-owned businesses, while at the same considering workers rights and reducing the burden on taxpayers. Our research concluded that the benefits of TMTC privatization were that the post-privatization business performance and service provided by Kuokuang Co., TMTC’s successor company, have been good; some illegal operators have been led to legitimizing their businesses, bringing them under official transport management; lightening of the government’s financial burden and removing the threat of TMTC bankruptcy; and setting an example of successful privatization for other troubled businesses to copy. Further, our research concluded that the TMTC privatization implementation model was applicable to implementing bodies and officials, target groups and the strategy of phased privatization. Finally, our research produced three policy suggestions: the staff-buyout scheme should be given a legal footing, preferential operating conditions and measures should also be recognized legally and the government should integrate handling of the problem of debts that remain post-privatization.