Romanian Unions Say 15% Raise In Public Sector Wages In 2011 Won’t Cover Inflation

Hancescu, head of Romania's Federation of Free Unions in Education (FSLI), said the 25% cut in public sector wages imposed by the Government this year won't be recovered in 2011, not even partially, because, he went on, not even the inflation and the elimination of the extra 13th monthly salary per year will be covered by the 15% raise planned for 2011.

"The 15% wage raise in 2011 announced by the Government actually translates into an indexation that will cover only the inflation rate estimated at 8% in 2011 and the elimination of the 13th salary, which means another 8% of education employees' salaries. In fact, the salaries of education employees won't get more money and their salaries will still be 25% lower than in June 2010", Hancescu said Thursday after talks between Government officials, unionists and employers' representatives at the Labor Ministry's headquarters.

Hancescu added the Government's refusal to raise the minimum wage to 750 lei (EUR1=RON4.2960), as requested by unionists, shows the Executive doesn't actually intend to do away with black market labor.

Cezar Corîci, head of Romanian employers' confederation UGIR-1909, on Thursday said the Government will seek a confidence vote in Parliament for a RON690 gross wage and a RON540 net wage in the public sector in 2011, while the proposition for the private sector is a gross wage of RON670, which means, he added, that Romania will still have two minimum wages per economy in 2011.

According to Corîci, Labor Ministry secretary of state Valentin Mocanu said Thursday the gross minimum wage in the private sector could be set at RON670. Corîci said the Government is considering a gross minimum wage of RON670 in the private sector, given that employers can offer a higher wage.

Base salaries in the Romanian public sector will increase by 15% in 2011 which means they will still be 13.75% lower than in June this year, when the Government slashed a quarter of state workers' pay, according to the unitary wage bill obtained by MEDIAFAX.

The document, which is dated November 17 and was discussed in the Cabinet meeting Wednesday, also reveals wage levels would not be changed by the end of next year.

The bill will be sent to the International Monetary Fund for consultations before the Government seeks a confidence vote in Parliament to adopt it.

The bill sets a 15% wage increase for next year in the public sector, but compared to wage levels of October 2010. The Government in July slashed public sector wages by 25%, which means state workers will still have wages 13.75% lower than before they took a pay cut until the end of 2011.

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