Romanian PM Calls For Work Group On Wage Law

The work group is to include politicians, unionists and employers, as well as officials of local administrations and specialists with the Ministry of Finance and Economy.

Tariceanu met with officials of political parties to discuss wages in the public sector, after the Constitutional Court ruled the 50% pay hike for teachers was constitutional.

Romania’s budget cannot sustain the 50% pay hike for teachers voted in parliament and the measure is likely to trigger a major economic crisis, Tariceanu said.

He said the Parliament should not commit to such an action without knowing the future structure of the government.

“It is not normal for the current government to commit to salary policies on behalf of a yet unknown future majority, and this is why I invited you to this debate (…),” Tariceanu told politicians at a meeting on Romania’s wage system.

He said wage hikes would certainly trigger an economic crisis and will widen inflation, particularly given the international financial crisis.

Conservative spokesperson, Bogdan Ciuca, said after the meeting that the government and parties will set up the work group by the end of the week.

He said the minimum principles on public wages should be established next week.