Mandated 10-day unpaid leave included in Budget revision

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The mandated 10-day unpaid leave for all the public employees has been included in the Budget revision approved on Saturday by the Government, Finance Minister Gheorghe Pogea said on Saturday at the Government House.

He argued that this measure is ‘absolutely necessary’ given the unfavourable economic conditions in existence, adding that the measure will be implemented in full compliance with the law.

‘We will leave up to each main public employer to take the measures that will adjust their wage spending by an average of 15.5 percent each month in September-November,’ said Pogea.

Pogea urged the public employees to understand that this is a temporary measure generated by the ongoing economic crisis.

One day previously, officials of the Finance Ministry and social partners held talks where trade union officials argued that the Budget revision was built on the savings resulting form the mandated 10-day unpaid leave, a measure on which the unions disagree, saying that they may consider legal action against the Government.

According to previous estimates, a cut in staff costs in the public sector by the equivalent of a 10-day unpaid leave per employee September-November would generate RON 1.5 billion, or 0.3 percent of the Gross Domestic Product, while an additional RON 497 million in savings would come from awarding time off in lieu of cash compensation for extra hours and cancelling pay bonuses in the public sector in 2009.

Minister Pogea recently explained that had this measure not been taken, cutting staff costs in the public sector would have entailed laying off tens of thousands of public employees.

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