Romanian Govt To OK New Layoffs In State-Run Cos, With Added Social Protection

Last year, through the Law reducing public spending, the Government decided that people laid off from state-run companies would no longer receive the monthly supplementary income. This year, the Executive is bringing the benefit back, in order to alleviate the impact of layoffs and avoid the risk of "rising crime and long-term social upheaval," says a planned emergency ordinance, according to people close to the matter.

The monthly supplementary income is equal to the difference between the individual's net average salary for the last three months and unemployment aid, as long as the net average salary is not higher than the national net average salary reported in January of the same year as the layoff by the National Statistics Institute.

The benefit is provided for 20 months to employees with 15 years length of service, for 22 months to employees who have worked for 15-25 years, and for 24 months to employees with over 25 years in the company.

The monthly supplementary income no longer paid if the former employee turns down a new job because its salary is equal or lower than this benefit, or if they refuse to attend reskilling programs. A job may only be turned down for health reasons, proven through a medical certificate and confirmed by medical committees.

The ordinance's explanatory note says the supplementary income will provided to all employees laid off from the mining sector between 2011 and 2018, increasing spending on the unemployment budget by 84.6 million (EUR1=RON4.1089) in 2011, RON102.2 million in 2012, RON63.6 million in 2013, RON43.5 million in 2014, RON30.8 million in 2015, RON18.8 million in 2016, RON8 million in 2017 and RON6.8 million in 2018.

In early February, economy minister Ion Ariton said he discussed with the International Monetary Fund delegation the restructuring of national coal company CNH, and agreed to keep four of the company's seven mines.

Delegation head Jeffrey Franks said the IMF wants Romania to separate viable mines from the non-productive ones, and to minimize their financial losses.

Several union leaders said after a meting with the IMF that social tension is mounting in the Jiu Valley, a major mining region, and warned of the risk for new miners' riots unless the Government stepped in immediately.

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