Romania Rail-Freight Operator Unable To Pay Salaries In Time

The employees of Romanian state-owned rail freight company CFR Marfa will receive their salaries for May with a delay of two to three weeks, as the company lacks the funds to pay both salaries and the installments of a EUR120 million syndicated loan, general manager Calin Gratian said Monday.

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Gratian said the employee will receive their due payments late each month, “until a measure is taken in the social area.”

“CFR Marfa’s revenue dropped 44% this year, while salary costs account for 92% of the revenue. Last year, the weight of salaries was of 38-39% of the revenue, while in 2005 they counted for 20%,” he said.

Gratian said the company’s only solution to survive is to cut costs to match the drop in revenue, by reducing either salaries or the number of employees.

“Unless we operate layoffs, we will have to reduce working hours to match the drop in revenues, namely by 44%. Salaries will decrease accordingly. I don’t see any other way,” Gratian explained.

CFR Marfa employs some 17,500 people.

Romania’s passenger rail company CFR SA also faces difficulties with salary payments, which led to protest actions of the employees.

Early June, CFR SA informed the trade unions that the company has serious financial problems and salary payments will be delayed.

Transportation Minister Radu Berceanu said at the time that unless the employees give up some of their bonuses, the ministry might not have the required funds to pay their salaries.

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