Transylvania Highway Constr Wks Eased, 2,300 Employees Might Be Laid Off

So far, the activity of several hundred workers was suspended, Michael Mix, the highway’s project manager, said Wednesday.

"In case of collective layoffs, employees will get severance payments representing the equivalent of two monthly basis salaries. We commit ourselves to cooperate with Transport Ministry, CNADNR, union and government leaders to solve these problems," he said.

Mix added that the company cannot continue to build the highway, without being paid and with no large pieces of land secured.

Construction works on the highway started in 2004, based on a contract worth EUR2.2 billion attributed to US constructor Bechtel. Works halted mid-2005 when Romanian authorities started looking into contracts concluded under the previous government. The highway is due for completion in 2013.

By the first half of August, the company finalized five kilometers of highway from a 25-kilometer sector, linking Gilau and Campia Turzii.

Romanian Prime Minister Calin Tariceanu said mid November he is “bothered” by the slow pace of works on the Transylvania Highway, saying the Government is not willing to ensure funding “exceeding what Bechtel is able to carry out”.

Tariceanu said at that time that there are highway segments which have not been finalized.

"We paid Bechtel 30% in advance at the beginning of the year, while Bechtel hasn’t completed one centimeter of what it had undertaken to build. Works must be done and quality certificates must be issued. We do not pay for works and afterwards wait for years to be completed,” the PM added.

The Prime Minister warned the company that there are rules governing the relationship between the two parties, and the company has rights, but also obligations that it must observe.

He added Bechtel has no additional rights compared to other companies operating in Romania.

Tariceanu expressed his hope that the Transport Ministry will intervene as there are contract provisions regarding the pace of works.