U.S. Constructor Bechtel Puts Off Massive Layoff Plans Until After April 15

Nicolae Fenesan, a union leader, said he learned of Bechtel's intention to sack 1,450 of a total 1,915 employees and stressed the remaining 465 employees would be kept to continue construction works on the 10.2 km highway section Turda - Campia-Turzii.

Fenesan pointed out that unions will sue Bechtel as soon as employees start receiving layoff papers, arguing Bechtel simply defies the Romanian laws, since it is determined to carry through its massive layoff procedures which were recently declared illegal by the local labor inspectorate in Cluj, northwestern Romania.

Bechtel spokesperson Bogdan Sgarcitu said late March, following a meeting with Cluj prefect Florin Stamatian, that Bechtel can halt massive layoff procedures anytime, adding a final decision would be made in April.

Bechtel said early February that the 1,933 employees who work on the Transylvania Highway construction site would be sacked as Romania's public road authority CNADNR failed to pay its EUR214 million debt to the company.

The Romanian management of U.S. Bechtel and local union representatives have recently agreed that works would continue on the 10.2 km highway section Campia-Turzii - Turda, bringing the overall distance to 50 kilometers to be completed, as long as financing is provided.

Prime Minister Emil Boc said early March the government, via the Transport Ministry, and Bechtel will sign a protocol whereby construction works on the highway will continue, adding the Romanian authorities in April will pay a new installment of the country's debt to Bechtel for construction works finalized so far.

The government estimates works on nearly 20 kilometers of the Transylvania Highway will be finalized this year and two thirds of workers will be kept.

Bechtel finalized the first 42 kilometers of the Transylvania Highway, namely the Turda-Gilau sector, until December 1, 2009. Transylvania Highway links central Brasov to western Bors on the border with Hungary.

The construction of Transylvania Highway started in 2004 based on a EUR2.2 billion contract attributed to Bechtel. Works were halted mid-2005, when authorities started looking into contracts concluded under the previous government. The deadline for the completion of works was extended until 2013 from the initial 2012.

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