Union Leader: At Least 30,000 Job Cuts In Romanian State Companies

04.29.2011 By Bostan Radu

Romanian National Union Bloc (BNS) president Dumitru Costin on Friday said that IMF officials have stated the main topic on the agenda of their talks with the local authorities is the restructuring of state-owned companies, which will involve laying off at least 30,000 employees.

Romanian National Union Bloc (BNS) president Dumitru Costin on Friday said that IMF officials have stated the main topic on the agenda of their talks with the local authorities is the restructuring of state-owned companies, which will involve laying off at least 30,000 employees.

Costin said, after a meeting with the International Monetary Fund officials, that the labor unions have not yet received a detailed plan for the restructuring of the 18 state-owned companies, but at least an estimated 30,000 people across several fields will be made redundant.

According to the union leader, the IMF delegation promised not to consider the issue "from a strictly macro perspective," but by looking at the way these companies are managed. He blamed the companies' losses on "theft," in the form of unfavorable contracts, with employees ending up paying the price.

The unions and IMF also discussed the new Labor Code and the Social Dialog Code, the latter of which will be analyzed by the Constitutional Court on May 5. Costin said some of the Labor Code's provisions will be amended, because they violate European legislation.

Costin was distrustful of Prime Minister Emil Boc's plan for more controls to eliminate illicit labor, arguing that it will result in abuse, bribes and pressure on some companies to make underhanded political contributions.