Prima pagină » English » Wage Hikes Should Correspond To Inflation, Economic Growth – Prv Auth Head

Wage Hikes Should Correspond To Inflation, Economic Growth – Prv Auth Head

The increase of state employees’ wages to be granted this period should correspond to the inflation rate and the economic growth, so as not to hurt Romania’s economy, head of the privatization authority Teodor Atanasiu told a press conference Friday.
Wage Hikes Should Correspond To Inflation, Economic Growth - Prv Auth Head
10 oct. 2008, 19:24, English

"If we have a 9% economic growth and an inflation reaching 7%, one cannot grant a 16% wage hike without increasing inflation,” Atanasiu said.

He added if the wage hikes will be granted, the country’s inflation would go back to “the two-three digit values” it saw between the 90s and 2004.

Thus, wage hikes would have no value, Atanasiu said.

According to him, those who favor wage hikes “have minimum knowledge of economy” or never considered the impact wage hikes would have.

"I think they thought they are candidates in uninominal elections and the people would embrace them and kiss them for such a gift. But these gifts will have an impact on all citizens, as inflation affects first the poor person, and then the rich one,” he concluded.

Prime Minister Calin Tariceanu said Friday he invites all political parties and social partners to discuss a law on state employees’ wages, so as to adopt this normative act after elections, no matter the future structure of the Parliament.

Unionists said they will not give up their protests, following their meeting with Tariceanu on Friday, which in their opinion was not a negotiation, but a way to inform the state employees’ representatives on the country’s economy status.

The Chamber of Deputies unanimously adopted a week ago the law stipulating a 50% hike for teachers’ wages. Following this decision, unionists in several sectors demanded a 50% wage hike.