Romania’s Wage Law Must Be Amended To Show Results In 2011 – IMF Official

Franks also said he understands there were pressures in Parliament for other things, and stressed that the Parliament should approve the pension law in September, so that it would come into effect starting January 1, 2011.

Referring to the unitary wage law, the IMF official stressed that authorities must consider changes in the wage structure in order to ensure fiscal sustainability. Franks highlighted that Romania should amend the Labor Code to ensure work force flexibility, which will generate higher productivity and make employment and layoff procedures easier.

Seitan told MEDIAFAX last week that the new salary grid set in the unitary wage law would be completed and put up for debates on August 12 or August 13, adding the new draft law would be approved by the Government at the end of September and would be forwarded to the Parliament.

Joint missions from the IMF and the EU will be in Bucharest until August 4 for a new review of Romania’s progress under a EUR20 billion aid package signed early last year. Following the mission, the IMF will decide whether to disburse a sixth loan tranche to Romania, worth around EUR900 million.