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| The Romanian Labour Market:Between Flexibility and Regulations 22/02/2011 |
| (2011-02-23) |
| Last updated: 2011-02-24 15:03 EET |
Romanian PM Emil Boc says that the New Labour Code aims at stepping up flexibility and boosting job opportunities. The opposition and their social partners do not see eye to eye with the government. The former are getting ready to seek a no-confidence vote in Parliament, while the latter prepare to take to the streets.
Ruling coalition parties in Romania have decided that the government should call for a vote of confidence in Parliament on the new Labour Code. Together with the party leaders of the Liberal Democratic Party, the Democratic Union of Ethnic Hungarians in Romania and the National Party for the Progress of Romania, Emil Boc worked out the latest draft of the much-debated labour law.
The introduction of a special law to modify collective labour contracts, extending the definite period of employment and increasing fines applied to employers who use black market workforce are some of the new elements of the law.
Representatives of the National Union for the Progress of Romania have voiced their satisfaction with the approval of two of their amendments: the special law on individual employment contracts and preserving indefinite employment contracts.
The Democratic Union of Ethnic Hungarians in Romania suggested to increase fines applied to employers who use black market workforce, instead of sending them to jail, as PM Boc originally intended. Following talks with ruling party officials, Emil Boc said the new Code would remove certain deadlocks on the labour market, making it more flexible so as to bring it in line with other European labour markets.
The Romanian PM added that many things have changed since 2003 as well, when the last Labour Code came into effect. Emil Boc:
“Romania’s EU accession along with the introduction of provisions pertaining to labour legislation and the economic crisis have shown that Romania still has some unsolved problems with respect to the legal framework of employment. Just take a look at legislations in other EU countries. Our employment contracts for a definite period of time account for barely 1.1% of overall employment contracts. Other states, such as Poland, have a 27% rating.”
The opposition approves neither of the final provisions of the draft law nor of the government’s procedural choice in adopting the law, and is thus determined to seek a no-confidence vote in Parliament. Victor Ponta, the co-leader of the Social Liberal Union, believes the new Labour Code should receive the approval of all parties involved, and should benefit both the employer and the employees. Victor Ponta:
“What we need is a Labour Code that protects both the employer and the employees. This is not a “banana republic” where the employer is a slave working the plantation. A European democracy is all about employers’ associations and powerful trade unions”.
Trade union leaders have voiced their anger at the new provisions regarding collective employment contracts at a national level, the reduction of individual employment contracts duration, and the terms of collective layoffs. They threaten to start protests.
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