Employers suggested raising the minimum wage to RON650 as of January 1, 2010 and said they were open for discussions on increasing it further to RON705 as of July 1, depending on the economy’s evolution.
Cezar Coraci, president of the UGIR 1903 employers’ association, said increasing the minimum wage to RON705, as per the Government’s and unions’ wishes, would result in massive layoffs, especially as excises and energy prices are expected to rise, and Romania is a long way from overcoming the crisis. He added that projections show the economy will slump in the near future.
Coraci also pointed out that Romania has not fulfilled the conditions imposed by the International Monetary Fund on cutting the salary fund by 15%; therefore, negotiations on the minimum wage must take that into account. He said that a RON705 minimum salary will only be accepted if the Collective Labor Contract is amended to provide for only a slight increase in the salary fund, to keep up with the rate of inflation.
Employers said they are waiting for unions to come up with definite proposals and for the IMF negotiations to conclude.
Labor Ministry state secretary Valentin Mocanu said employers and unions must start talks on amending or adding to the Collective Labor Contract, and that an agreement between the two parties could help the next Government in taking a decision tremendously.