Romanian Transp Minister, Railway Unionists To Discuss Spending Cut Programs Monday

Berceanu will look, until Monday, into the programs submitted by railway companies, which are aimed to cut spending and boost revenues.

The Transport Ministry last week said state-owned companies in the railway sector will finalize a spending cut program in the August 16-20 interval, which will be sent to the transport minister and subsequently discussed with unions in the sector.

About 100 railway transport unionists protested Wednesday outside the Transport Ministry headquarters, displeased with the restructuring program CFR and the authorities’ decision to put CFR employees on furlough.

Liviu Pescarasu, general manager of railway passenger company CFR Calatori, last week said all of the approximately 15,000 employees of CFR Calatori will be put on furlough by rotation until the end of the year.

Romania’s Transport Ministry is working on a draft act, whereby it will sack 12,800 employees in the railway sector until the end of September, people close to the matter told MEDIAFAX mid-August.

Layoffs mainly target employees with freight railway company CFR Marfa (5,000 people), employees with passenger railway company CFR Calatori (3,900 people), employees with railway company CFR SA (2,900 people) and employees with rail upkeep company Electrificare CFR (1,000 people).

The ministry sacked 10,361 employees in the railway sector between March and April 2010, arguing at the time that the poor economic and financial situation within companies in the sector required a restructuring and reorganization program. Layoffs mainly targeted employees with CFR Marfa (6,700 people), CFR Calatori (1,100 people) and train car upkeep and repair company CFR IRV (800 people).