UGIR – 1903: Romania’s economy does not afford rising wage pool in private sector before 2011

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Romania’s economy cannot afford rising the wage pool in the private sector before 2011, head of the UGIR- 1903 employers’ confederation, Cezar Coraci said after a meeting of the Commission of social dialogue at the Labor, Family and Social Protection Ministry (MMFPS).

„The GDP went down 7.6% in H1 and the industrial output decreased 10% , according to data supplied by the National Statistics Institute. So increasing the wage pool is out of question for the next year an a half,” Coraci said.

Representatives of the employers’ associations said they can handle an increase in the minimum wage to 650 lei, even at time of crisis, but without raising the wage pool, which would require restructuring.

„I doubt that the important trade unions don’t understand that a strike this year would ruin the Romanian economy and deepen the crisis,” Coraci explained.

Labor Minister Marian Sarbu said it would be necessary for the minimum wage be set through a Govt decision and not be part of the single salary law (where the coefficient I, based on which state employees’ salaries are calculated, is set at 705 lei for 2010), to correspond to coefficient I.

„We will soon take a decision on the minimum salary because it is a basic element of next year’s budget. We believe that trade unions and employers’ associations will finally agree and the government will only ratify the minimum salary agreed on,” said the Labor Minister.

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