Romanian Govt Freezes Hiring In 2011 Because Of Slow Economic Recovery

The decision was taken through an emergency ordinance approved in the Government's Wednesday meeting.

Local administration institutions with up to 10 approved positions will be allowed to fill one in two vacant jobs.

As long as the total number of jobs provided by the budget for each employer is not increased, the ordinance exempts high public officials, as well as public management positions, military leadership positions, the managing directors and deputy managing directors of the ministries' decentralized services and the other central administrative bodies.

Public institutions will be required to report the number of newly vacant positions to the Ministry of Finance by the 15th of each month. They may advertise these jobs no more than once per month.

In the ordinance's motivation, the Government argues the freeze is necessary to meet next year's target 4.4% budget deficit agreed upon with the International Monetary Fund, as well as speed up the economy's recover from recession. The Executive aims to bring the share of personnel expenses to 7.5% of the GDP. It anticipates RON350 million in savings, but also RON140 million lower revenue from income taxes paid by public employees.

The ordinance also says around 46,000 public sector jobs have been slashed through voluntary departures from the system, reducing expenses by RON990 million, but "a more structured approach to the sector's reform is needed in the future."

People close to the matter told MEDIAFAX the Government is considering amending the ordinance later, to cover instances of "single positions" in public bodies, such as firefighter in schools or kindergartens - jobs which are required and should be regulated differently.

In 2009, after negotiations with the IMF, the Government issued an emergency ordinance suspending hiring in public administration.

A draft ordinance on the implementation of the unitary wage law, obtained and presented by MEDIAFAX in January 2010, said hiring would be frozen in 2010 and 2011. However, then-Labor Minister Mihai Seitan said, after a Government meeting, that the measure would only apply to 2010.

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