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| WORK AND PENSIONS 16/09/2010 |
| (2010-09-16) |
| Last updated: 2010-09-17 11:48 EET |
The new pension law was passed in the Romanian Parliament, carried by just two votes. The project was passed by members of parliament belonging to the parties in power – the Liberal Democrats, ethnic Hungarians and independents – while members of the opposition, the Liberals and Social Democrats, left in protest to show their anger at the fact that pensions were not set at 45% of the gross medium wage. The deputies set the minimum pension at 732.8 lei, around 175 Euro, while establishing that the retirement age should stabilize at 65 years of age by 2030. MPs also added an initiative to integrate into the single pension system the retirement revenue of soldiers, policemen and people paid by author rights contracts.
According to PM Emil Boc, this law has been made for the medium and long term. Labor Minister Ioan Botiş said that the law is honest, fair and equitable for Romania. He said that if pensions are not reduced next year, the deficit will reach three billion Euro, which could not be covered by further borrowing. Botiş said that while the number of retirees is growing, the number of working people is dropping, and said that it is important for the pension fund to increase the number of contributors and organize a higher degree of collection. He also said that right now the ratio between retirees and tax paying working people is 0.89, and that only a third of the 4.7 million pensioners have made full contributions.
Also on Wednesday, deputies debated the simple motion introduced by the Liberals regarding labor and social protection, which will be voted on next week. The initiators of the motion say that the emergency executive order on author rights taxation is illegal, and that they don’t accept the idea that people paid for intellectual rights should make social contributions. Another issue brought up by the motion is the rate of unemployment, which was said to have risen sharply. In retort, the Minister of Labor claims that figures show the opposite, and that between April and July unemployment dropped. On the other hand, trade union groups announced separate industrial actions, protesting against the government’s austerity measures.
On Monday, the members of the Cartel Alfa union federation will picket all prefect’s offices in the country, and in Bucharest protests will be held by unionists from the national health system. On Tuesday, protests by teachers are expected. Starting on Monday, employees in law enforcement will reduce their activity. On Wednesday, CNSRL Fratia and Cartel Alfa will hold joint protests, and the National Trade Union Block announced it would hold its own separate industrial action.
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