Romania’s Freight Railroad Co CFR Marfa To Sack Over 6,000 Staff Without Severance Pay

Union leader Iulian Mantescu told MEDIAFAX Friday unions were told 6,380 of a total of 16,220 employees at CFR Marfa will be laid off and will not receive severance wages.

Mantescu said Monday he will meet Monday with all railroad unionists to analyze the restructuring program sent by the company's management, adding he does not agree with it.

"I will challenge this program for two reasons. The railroad company's management did not hold talks with unionists when they drew up the program and the selection criteria for the employees that will be laid off were not specified," Mantescu said.

Mantescu said the passenger division of the railroad company CFR Calatori did not send unions any program regarding layoffs.

CFR Marfa employees habe been in technical unemployment for six months and the technical unemployment is to cease at the end of 2009.

Transport Ministry secretary of state Gheorghe Popa said in October that in the first three months of technical unemployment at CFR Marfa, from July to September, each employee took 26-day leave, adding the decision followed a serious lack of activity in 2009 compared to 2008.

CFR Marfa former general manager Calin Gratian said late July that technical unemployment might prolong and this depended on the country's economic evolution.

Early July, CFR Marfa put approximately 7,000 staff on rotating technical unemployment due to a severe fall in demand. The workers were paid 75% of their monthly wage during three months of technical unemployment.

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 a draft decree drawn up by the Transport Ministry.

Most jobs will be cut at the freight division of the state-owned railway company CFR Marfa (6,700 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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