Romania Plans To Cut Staff Spending By EUR100M Through Public Admin Layoffs

Romania’s government estimates to cut staff costs paid out from local budgets by RON471.5 million (EUR114.4 million) in 2010, by sacking nearly 17,000 local administration employees, which will save nearly RON550 million over the next four years.

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Spending cuts were calculated in ratio with the total number of 16,742 sacked employees, social security contributions and the average gross wage.

Sacking public servants in the local administration will also reduce by RON241.3 million the revenues collected mainly at the social security budget, according to a draft law cutting back on the number of local administration employees.

About 17,000 Romanians working in the local administration could be laid off in 2010, and the employees close to retirement and those with no children in care are the first to be sacked, according to the draft law.

Social partners will hold talks on the draft law cutting back on the number of employees within city halls and local councils, depending on the number of inhabitants in the respective areas, Sed Lex union leader Vasile Marica said Wednesday.

Gheorghe Nichita, mayor of eastern city of Iasi, on Wednesday told a press conference that local administrations ought to decide on the number of jobs to be scrapped in this sector, and not the government, in order to prevent hindering the functioning of public institutions.

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