In the midst of economic crisis and after accumulating 184 million euros in losses, the stell company Navantia has increased its labor costs by 22 percent.
The incongruity represents how many public companies are managed and explains the rising costs of public spending. One out of every five euros that Navantia makes goes to payroll costs. In addition to replacing retiring workers with highly educated employees, some workers will join Navantia from private steel companies that have shut down.
The disparity resembles an earlier purchase of high-speed railes that were never used and that were ultimatley sold at a loss. These examples call into the question the roll of public companies in Spain's economy and call for their restructruing -- however long that takes.
