Romanian Govt Keeps Salaries Of State-Owned Co Managers Capped

The wages of the Romanian Government's representatives in the boards of state-owned companies will continue to be capped, at least until new income and expenses budgets are approved, according to a memorandum approved by the Government on Wednesday.

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For the past two years, these wages have been capped through emergency ordinances, but the Government has not issued such an act to extend the measure into 2011. Furthermore, the Executive is not allowed to issue emergency ordinances for the duration of the Parliament's winter recess.

Government spokeswoman Ioana Muntean said Wednesday that the state's representatives on the boards of state-owned companies will continue to receive their wages at 2010 levels, at least until income and expenses budgets for 2011 are approved. Afterwards, wage levels may vary from one company to another, according to performance criteria such as higher revenue, lower expenses, lower losses and maximized profits.

The ministers have been authorized by the prime minister to see that these rules are followed even in the absence of an emergency ordinance.

In 2009, the Government decided to cap the wages of the state's representatives on the boards of state-owned companies at 1% of the salary of such a company's general manager. The managers' salaries were themselves cut down to 4,800 lei (EUR1=RON4.2705) from RON20,000-28,000. Later, the Government decided that these caps would apply in 2010 as well.

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