Romanian Railway Unionists Threaten To Halt All Trains Starting May 31

Ion Popescu, president of the Meridian union federation, said after talks with the Government, that railway unionists will halt trains and go on general strike starting May 31, in protest to the Executive’s plan to cut wages by 25%. He added that subway and public transport employees are considering the same course of action.

Popescu also said the 30,000 retired miners are dissatisfied with the plan to cut social pensions by 15% and, although their rallies are only local at the moment, they may grow in the future.

Romania’s Finance and Labor Ministries will continue talks with unionists until next Wednesday, when the Government is set to approve Romania’s letter of intent with the International Monetary Fund. Prime Minister Emil Boc stressed, however, that unionists’ proposals will only be accepted if grounded, adding that, at the moment, Government officials and unionists have different positions and views with respect to cutting expenditures in the public sector.

One issue about which there is disagreement concerns fiscality – unionists supposedly request higher taxes, while the Government is in favor of keeping taxes at current levels, but reducing budget spending.

Bogdan Hossu, leader of the Cartel Alfa union federation, said after the talks that there is no hope of the cost-cutting measures included in the letter of intent with the IMF will be altered, adding unionists will lobby against the letter’s adoption in Parliament.

The Government has pledged to drastically cut public spending to tighten the country’s budget deficit at 6.8% of GDP, in order for the International Monetary Fund and other international institutions to release a new installment of a EUR20 billion rescue loan agreed last year.

Boc said Wednesday that the Government will seek a confidence vote in Parliament to adopt the drafting spending cuts it has announced.