Romanian Transport Ministry Plans To Sack About 8,300 Railway Sector Employees

Layoff decisions will also affect employees with passenger railway company CFR Calatori (2,075 people) and employees with railway company CFR SA (1,630 people).

Layoffs and other cost-cutting measures will save 788 million lei (EUR1=RON4.2244) to the ministry's budget in 2011.

The number of people to be sacked depends on whether social partners will be willing to give up some of their benefits, such as meal vouchers, vacation bonuses, and other benefits.

Transport Minister Radu Berceanu said earlier Monday that the cost-cutting plan he will present to railway system unionists includes layoffs, adding that the number of those affected depends on whether other cost-cutting measures are found.

Berceanu said the plan is not yet final. "If talks yield other solutions to cut costs and raise revenue, there will be fewer layoffs" he said.

The minister also said state-owned railway company CFR registers losses of around 600-700 million lei (EUR1=RON4.2304) yearly. "We could have directed CFR's losses to investments. If we had the money to repair tracks and purchase train cars, revenue would be higher," said Berceanu.

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