Romania’s Freight Rail Co CFR Marfa Axes Jobs, Freezes Wages, Sheds Bonuses To Cut Costs

The plan, which was approved by the government, states CFR Marfa is to cut over RON172 million by laying off over 6,000 employees and freezing wages and cutting bonuses for the remaining staff.

The restructuring plan sees a boost in revenues of RON104.5 million if the company manages to find new clients, covering the isolated freight traffic segment, attracting small clients that use road transportation and renting or selling fixed assets.

CFR Marfa unionists met with company officials Tuesday to discuss the company's plan to shed 6,380 jobs by March 1 and the meeting ended without any results, as management refused unionists' demands regarding severance pay.

Back in December 2009, unionists said they would sue the Transports Ministry and CFR Marfa because they have not withdrawn the collective layoff plan which would come into effect before the Government decision providing severance pay.

Romania will fire more than 10,300 railway sector employees, who will get double the average net wage per economy as severance, unemployment aid and monthly severance pay for 20 to 24 months, depending on seniority, according to the draft decision in question.

Most jobs will be cut at the freight division of the state-owned railway company CFR Marfa (over 6,000 people), the passenger division CFR Calatori (1,032 people), train car maintenance and repair company CFR IRV (800 people), the railway company CFR SA (600 people) and the locomotive maintenance and repair company CFR IRLU (500 people).

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