Romania
Background information on industrial relations in Romania
- 26 Sep 2011
Romania: Representativeness of the European social partner organisations: Commerce – RomaniaBetween 1998 and 2008, the number of employed persons and the number of employees in Romania’s commerce sector increased by 26.0% and 35.5% respectively, while the number of companies fell by 2.6%. The entry of the global retail chains into the Romanian market led to the elimination of a large number of small and micro companies. The collective agreement in force at sectoral level is signed by one trade union federation and one employer organisation, each of them covering only about 1% of the total employees. This is a result of the preponderance of the small companies in this sector, which makes organisation of representative trade unions and employer organisations more difficult.
- 24 Aug 2011
Romania: Drastic punishment for undeclared workRecent amendments to Romania’s Labour Code, which came into effect on 1 May 2011, set out new and more severe penalties for undeclared work. Recent data published by the government suggest that the new regulations have had a spectacular effect. The number of employment contracts grew by over 580,000 in two months, and more than 1,700 employers were penalised following site inspections. However, employer organisations and trade unions are sceptical about the figures.
- 24 Aug 2011
Romania: National unique collective agreement ended by lawThe Romanian government has passed legislation that changes the way collective agreements work at all levels, from individual company up to national level. These are the first substantive changes for 20 years. The new legislation also affects the representativeness criteria for social partners. Collective bargaining has effectively come to a standstill, as social partners are having difficulty in getting reorganised at sector level and obtaining representative status.
- 11 Aug 2011
Romania: Police continue protest against governmentRomania’s police protested in the streets at government plans to restructure the Ministry of Administration and Interior Affairs by cutting around 10,000 jobs. The plans were outlined in a bill drafted at the end of 2010 and approved by government in March 2011. The National Union of Police Workers and Ancillary Personnel continues to protest, though parliament has dismissed the bill and amended police bylaws. Minister of the Interior Traian Igaş agreed to talk to the union on 2 June.
- 01 Aug 2011
Romania: Romania: The representativeness of trade unions and employer associations in the banking sectorRomania’s banking sector underwent major expansion in the past decade. The number of companies in the sector increased from 786 in 1998 to 3,038 in 2004 and 6,680 in 2008. During the period 2004–2008 the number of employees increased by approximately 45%. In the banking sector there is only one trade union organisation representative at sectoral level (Trade Union Federation of Assurance and Banking). None of the employer organisations activate at present in the banking sector has representativity or the right to negotiate and conclude collective agreements at sectoral level and as a result there is no collective agreement in force at sector level. At present, the provisions of the national unique collective agreement for the period 2007–2010 are applicable.
- 29 Jul 2011
Romania: Romania: EIRO CAR on ‘Helping young workers during the crisis: contributions by social partners and public authorities’The disadvantaged status of youths on the labour market and its trend towards worse due to the economic crisis is reflected in the unemployment rates: the 2008 overall unemployment rate was 5.8%, with an unemployment rate of 18.6% for 15 – 24 age group; in 2009, the national unemployment average rate went up to 6.9%, and the rate among persons aged 15 – 24 rose to 20.8%. Also, in the second quarter 2009, the rate of insertion on the labour market for the persons aged 15 to 34 years who left education was 24.4% in the first six months and 33.6% one year after leaving education. Although positive, the initiatives of the Government and of the social partners cater for a diminutive number of young persons, and seem to ignore the needs of a large number of youngsters who enjoy neither the protection of trade unions nor the care afforded to workers by employer organisations.
- 15 Jun 2011
Romania: Romania: EIRO CAR on 'SMEs in the crisis: Employment, Industrial Relations and Local Partnership'As at the end of 2008, the SMEs accounted for more than 99% of all active businesses in the Romanian economy, and provided employment to two thirds of the overall number of employed persons. One year later, with the crisis looming, the number of ventures that suspended business temporarily was 11 times greater; the businesses that went into voluntary liquidation were 5 times more numerous; and the number of companies deleted from the Trade Registry’s records was 2.5 times bigger. Access to European structural funds is a breath of fresh air that SMEs cannot enjoy so easily due to specific bureaucracy and to the lack or scarcity of their own funds for co-finance. This makes it necessary for the Government to offer them a more substantive support. Although the local public-private partnership for employment is an important form of such support, it has yet a long way to go until it becomes able to play a significant role in the rise of the SME sector, which can not happen unless the authorities act as a catalyst in the process.
- 15 Jun 2011
Romania: Romania: Representativeness study of the European social partners organisations – Public administration sectorIn the past decade the number of employees in the public administration increased more rapidly than in other economic sectors. Starting in 2003, the extension of the right to establish trade unions to various categories of public employees (such as public servants and police officers), coupled with the rise in the number of employees, led to an expansion in trade union membership and power in the sector. The financial and economic crisis is a catalysing factor for building new trade union alliances which increase bargaining power in relation to the government.
- 29 Apr 2011
Romania: Government and trade unions clash on new Labour CodeAfter several rounds of unsuccessful negotiations with the government, on 18 February 2011 the representatives of Romania’s five national trade union confederations withdrew from discussions with the Prime Minister and the Minister of Labour, considering that all possibility of reaching an amicable settlement through dialogue had been exhausted. The unions said they believed that the only means left to them to defend their interests were street action and a general strike.
- 21 Apr 2011
Romania: Representativeness of the European social partner organisations: Education sector – RomaniaThe aim of this representativeness study is to identify the respective national and supranational actors (i.e. trade unions and employer organisations) in the field of industrial relations in the education sector in Romania. In order to determine their relative importance in the sector’s industrial relations, this study will, in particular, focus on their representational quality as well as on their role in collective bargaining.
- 19 Apr 2011
Romania: National deadlock over collective agreementHopes in Romania that a new four-year national collective agreement would take effect from January 2011 have been dashed. Only four of the 13 national employers’ confederations signed the new agreement on 15 December 2010, meaning that it cannot be registered at the Labour Ministry, and thus cannot be put into practice. Some of the employers’ opposition stems from the government’s intention to start public debates over amending the Social Dialogue Code and the Labour Code.
- 08 Mar 2011
Romania: New legislative initiative to amend Labour CodeFaced with the need to reform labour relations in order to stimulate economic growth in the wake of the economic crisis, the Romanian government has put forward a bill to further amend the Labour Code. The amendments, which have been criticised by the social partners, seek to extend the probation period of new employees, the conditions of fixed-term employment contracts, temporary agency contracts, notice periods, working time flexibility and collective dismissals.
- 02 Mar 2011
Romania: Government issues draft Social Dialogue CodeIn late November 2010, Romania’s Ministry of Labour, Family and Social Protection issued a draft Social Dialogue Code. The draft is intended to overhaul the way social dialogue is currently regulated and relates to the structure and functioning of trade unions and employer organisations, the country’s Economic and Social Council and social dialogue committees, as well as the information and consultation of employees, collective bargaining and labour disputes.
- 14 Feb 2011
Romania: Romania: Industrial Relations in the Health Care SectorOver the past decade, the Romanian health care system has been the object of many initiatives, attempts, and successive reform schemes. In spite of a rise of public spending for health the budget allocations are still much below the average for EU 27. The collective agreement negotiated in the health sector is a sectoral multi-employer agreement. This collective agreement is the basis on which, in each medical establishment, employer and employees negotiate their agreement at company level. Confronted by the deficit of personnel in the health sector, the social partners, both the unions and the employers, have succeeded in obtaining salary raises in recent years, and the provision, by law, of the fidelity bonus.
- 20 Jan 2011
Romania: Public institutions blocked by protestsHuge cuts in the wages of thousands of Romanian tax officials and finance workers sparked spontaneous protests on 13 October 2010, which spread to workers in pension, health insurance and employment offices. The National Trade Union Confederation ‘Cartel Alfa’ called for a total strike by public employees and the National Trade Union Bloc expressed solidarity with them, while the Alliance of Employers’ Confederations warned the protests could harm economic stability.
- 19 Jan 2011
Romania: Romania: EIRO CAR on "The effect of the Information and Consultation Directive on Industrial Relations in the EU Member States five years after its transposition"Directive 2002/14/CE was transposed into Romanian legislation and took effect on 1 January 2007. The relatively short time since its coming into force explains the scarcity of information on how information and consultation bodies actually function. From our information, it appears that the social partners have not requested the creation of new information and consultation bodies at corporate level, although the law contains provisions to this end.
- 11 Jan 2011
Romania: Romania: EIRO Annual Review - 2009The political context of 2009 was marked by the tensions in the governmental coalition, euroelections and the election of the president of the state. The tripartite debates on the anti-crisis programme, started since the end of 2008 continued during the entire year, without significant practical measures. The economic and financial crisis that increasingly afflicted the economy of Romania in 2009 shifted the stress of claims from higher salaries to safer jobs. After more than five years of fruitless attempts and endless discussions, the framework unified pay law for the employees paid from public funds was promoted, putting an end to a chaotic issue regulated previously by no less than 39 various pieces of legislation.