Public wages to increase by between 1 and 20 pct in 2011

Public wages could increase by between 1 and 20 percent from their current levels, according to the draft public pay law for 2011 discussed by the Government and trade unions on Monday.

The two parties discussed the framework law concerning the public wage system and a draft public pay law for 2011 to see what pay increases are possible for 2011.
Leader of the Fratia National Free Trade union Confederation of Romania Marius Petcu says small wages of between RON 600 and RON 800 could be increased by 20 percent in 2011, while high public wages in excess of RON 2,500 would increase by 1 percent only.

Between these wage ceilings there will be various pay increase coefficients that account for the current pay. The draft laws also provide for the discarding of merit pay, extra-month pay and holiday bonuses. The Government is suggesting a minimum wage of RON 640 for 2011, which the trade unions rejected asking for new computational versions that would allow for minimum wages of RON 675 and RON 705.

Deputy Chairman of the Cartel Alfa trade union federation Liviu Apostoiu says that Government will discuss the minimum industrial wage with the trade unions next week. In 2011, the public pay pool should not exceed RON 39 billion and the number of public employee should not exceed 1.29 million people.
Chairman of the BNS National Trade Union Bloc Dumitru Costin says that after the 25- percent cuts in public wages the minimum wage was kept at a very low level and the Government’s suggestion for a RON 640 minimum wage in the public sector will trigger a similar behaviour in the private sector, while the minimum industrial wage will continue to stay at a very low level, which will generate chronic issues for the social security systems.

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