EMCC European Monitoring Centre on Change



Geographic Location

Country: Romania
Region: Tulcea; Sud-Est
Location of affected unit(s): Tulcea (Sud-Est region, Tulcea county)


Sector: Manufacturing
Manufacture of basic metals and fabricated metal products, except machinery and equipment
24.1 - Manufacture of basic iron and steel and of ferro-alloys
Number Employed: 1400

Employment Effects

Announcement Date: 15-02-2006
Planned Job Reductions min: 1200
Planned Job Reductions max: 1200
Type of Restructuring: Bankruptcy/Closure
Employment Effect Start: 01-03-2006
Direct Dismissals: 1200

Additional Information

Late 2005, the shareholders of Feral company in Tulcea (Sud-Est region, Tulcea county) decided to freeze activity in the factory, as the prices set by the electric power suppliers would put the company on losses. Hoping to find a solution, trade union members staged protests against this decision in January 2006. On 15 February 2006, company employees were informed that legal procedures were being applied to cut jobs. Representatives of the County Employment Agency (Agenţia Judeţeeană pentru Ocuparea Forţei de Muncă, AJOFM) met with the trade union to offer pre-redundancy services. AJOFM announced that it was the largest scale-redundancy to occur in Tulcea in recent years as 1,200 employees would lose their jobs, in successive series starting 1 March 2006. According to company management, of the approximately 1,400 employees, 1,200 are to be made redundant, the rest will stay on to ensure equipment maintenance and guard the premises. ‘The company has handed us a list of more than 170 names to be made redundant in the first series’, declared a representative of AJOFM. Starting 16 February, the trade union commenced a new wave of protests. On every working day, between 12.00 and 14.00, company employees would picket outside the city hall building. Feral is the sole manufacturer of iron alloys in the Romanian steelworks including a wide range of manganese, chromium, nickel iron alloys and metallic silica. Over 99% of the company output is exported. The company is also the third major electric power consumer in Romania.