Romanian State-Owned Railway Companies’ 2011 Budgets Entail Sacking 5,588 Employees

According to latest data, the ministry plans to lay off about 7,300 employees of the three railway companies.

The staff expenses of freight carrier CFR Marfa will drop 21.8% to 336.6 million lei (EUR1=RON4.2621) from RON430.58 million, and its salary fund by 21.9% to RON255.56 million, from RON327.5 million.

The average number of CFR Marfa employees will be cut by 2,905, to 8,650, and the average monthly wage will rise to RON2,462, from RON2,306.

Staff expenses of passenger carrier CFR Calatori will be cut by 6.5% to RON599.98 million, from RON642.22 million, and the salary fund will drop 5.7% to RON454.01 million, from 481.84 million.

The average number of CFR Calatori employees will be reduced by 883, to 14,401, while the average monthly wage remains unchanged (RON2,627).

Staff expenses of railway infrastructure administrator CFR SA will decrease by 11.6% to RON836.51 million, from RON946.93 million, while the salary fund will be reduced by 11.2% to 644.43 million, from RON726.08 million.

The draft act reads 1,800 CFR SA employees will be laid off. The average number of CFR SA employees is set at 24,200 and the average monthly salary will drop to RON2,219.

Only the CFR SA's budget states revenue and expenses increases, namely a 51.6% increase in revenue, to RON2.29 billion from RON1.51 billion, and a 24.5% expenses increase to RON3.04 billion, from RON2.44 billion.

CFR Marfa's revenue will drop 12.5% to RON1.05 billion, from RON1.2 billion, and its expenses will be cut by 5.8% to RON1.13 billion, from RON1.2 billion.

The revenue of CFR Calatori will increase by 5% to RON2.28 billion, from RON2.4 billion, and expenses will increase by 11.6% to 2.28 billion, from RON2.58 billion.

CFR SA will register losses amounting to RON748.39 million, CFR Marfa will have losses of RON81.2 million, while CFR Calatori will register no losses.

CFR Marfa will be allotted RON116 million for investments, CFR Calatori will receive RON275 million (of which RON250 million from the state budget) and CFR SA will be allotted RON527.07 million for investments (of which RON409.22 million from the state budget and RON117.85 million from its own resources).

CFR SA's own revenue, which represent taxes on the use of railway infrastructure, might drop 3.1% to RON857.75 million, from RON885.57 million.

CFR Calatori will be granted subsidies amounting to RON1.028 billion.

CFR Marfa's overdue payments are expected to rise by 23% to RON765.6 million, and its receivables are expected to climb 44.3% to RON360 million, from RON249.46 million.

Overdue payments of CFR Calatori are expected to hit RON484 million and receivables will amount to RON285 million.

CFR SA's overdue payments will rise by 45.7% to RON4.59 billion, from RON3.15 billion, while its receivables will drop 6.5% to RON1.14 billion, from RON1.22 billion.

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