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Media Headlines 08/12/2010 |
(2010-12-08) |
Last updated: 2010-12-09 16:23 EET |
Debates in Romania on the future Labour Code are in full swing, and the stand of foreign investors cannot be ignored, even if their analysis of the Romanian labour market is regarded as not necessarily accurate by trade unions and employers’ associations in this country.
“Eliminating bureaucracy and rendering employment contracts more flexible could lead to the creation of 90 thousand jobs” is the conclusion drawn by the daily ZIARUL FINANCIAR following an analysis presented by the Foreign Investors Council, a private association comprising over 100 companies, with a total turnover of 36 billion Euros.
The most important changes proposed by the Council are the elimination of intricate lay off procedures, the possibility to extend temporary labour contracts and cutting down the number of working hours concurrently with lowering salaries, in the periods when production drops. “We are not saying we want to sack people more easily, we want to make it easier to both recruit and, if necessary, lay people off” said the president of one of the big foreign brewers, quoted by ZIARUL FINANCIAR.
The paper also carries the opinion of another investor, according to whom performance is the criterion in keeping with which a person can be fired. “Under the current legislation, performance equals education, but having a higher education does not necessarily mean people properly carry out their work tasks” the businessman said.
EVENIMENTUL ZILEI also writes that foreign investors would also want the national collective bargaining agreement to no longer be compulsory, because it imposes additional conditions to those stipulated in the current legislation. “Foreign employers would rather observe contracts that they themselves negotiated with the employees,” said one of the employers’ representatives.
There are, on the other hand, concrete proposals such as increasing the trial period for management from one to six months, the disciplinary investigation of employees right after they commit an error and the elimination of trade union leaders’ protection. But how does the Government want to amend the Labour Code? The daily GANDUL writes that the draft code provides, among other things, that a work week cannot exceed 48 hours.
As regards overtime, it would be compensated with free hours, paid within sixty days, as compared to only 30 as the current code provides. Another amendment targets the notice period, which should be extended to a minimum of 20 days for regular employees and 45 days respectively for those in executive positions.
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