Redundancies at CFR Marfa, starting March 8

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The National Railway Freight Company – CFR Marfa is to start collective redundancies of some 5,000 employees on March 8, and the Government is to adopt in its next week meeting a decision on the methodology of application of the Ordinance on redundancies, Gheorghe Popa, State secretary with the Ministry of Transport told on Thursday, on the occasion of a seminar on railway topics.

“Currently, the restructuring programme includes 6,380 employees, but just approximately 5,000 will receive compensatory payments because the remainder of some 1,500 people either took retirement, or from various reasons left the company. At the moment, the company employees are issued lay-off notices and redundancies will be effectively started on March 8”, said Popa.

CFR Marfa sent the trade unions, in December 2009, a notification to announce that a number of 6,380 company employees are to be made redundant.
Overall, as many as 10,301 staff will be laid off at the level of all the railway companies, the allocated amount from the state budget for compensations amounting at 152 million lei.

The Government adopted on January 29 the ordinance setting the financial ceiling for the compensations to be paid to CFR employees going to be laid off. Basically, those who have a length of service up to 15 years will receive 12-13 redundancy payments, those between 15 and 25 years – 14 redundancy payments and those with more than 25 years will receive 15 redundancy payments. The redundancy payment represents the equivalent of the average wage of the employee set to be laid off.

According to each person’s length of service an added amount will be received, but the unemployment benefit plus the wage supplement cannot exceed the average wage per economy, of 1,300 lei. The Ordinance also provides that, if the employee refuses two job offers, he/she will receive only the unemployment benefit and in case he/she finds work in the private sector, the wage supplement for the length of service will be further paid.

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