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| ROMANIAN LABOUR MINISTER AT WAR WITH TRADE UNIONS (7.08.07) |
| (2007-08-07) |
| Last updated: 2007-08-08 13:26 EET |
The first signals that Romania may have work force problems is coming from the industry, services and especially constructions. Paradoxically Romania is lucky because it still has big loss making companies formerly owned by the state which are cutting down on their activities and turn to mass sackings. The authorities are still trying to mitigate the social impact of this phenomenon by granting compensatory payments. Established 10 years ago, in an attempt to smoothly reform mining in the Jiu Valley in central Romania, the compensatory payment system helps people who are fresh out of a job to survive for periods of 6 months to 2 years.
According to Labour Minister Paul Pacuraru the present day landscape of labour in Romania reflects the economic reality of the country. On the one hand formerly state owned enterprise are still laying off people while the private sector begins to be faced with a shortage of labour. While nobody seems to be able to find a solution to this problem, the minister of Labour thinks there might be a way out: in his opinion the solution is to cut compensatory payments and transfer employees from companies undergoing restructuring, to those confronted with a labour force deficit. The trade unions who had not been consulted on the matter reacted promptly, saying that you can’t just send all employees, regardless of their qualification into constructions, road building or bush trimming. The Unions have also rebuffed another idea put forth by the Minister of Labour, namely to reduce the number of civil servants by 10%.
Some might argue that the Labour Minister is beginning to panic at the thought of the heft pension increase with a strong electoral flavour promised by the Liberal government. By looking at the figures analyst Cristian Parvulescu argues that it false that Romania has too many civil servants. Quite on the contrary, the number of civil servants in Romania is ten times smaller than that in France, for instance, adding that the French state functions well, while the Romanian one not so much. Cristian Parvulescu is rather tempted to believe that the suggested sacking of 10% of the civil servants is actually a “pre-electoral cleansing” through which the minority government dominated by liberals is trying to get rid of those people in the administration who are politically undesirable.
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