Romanian State-Owned Cos’ Salary Funds Unaffected By Wage Cutting Austerity Plan

The 2010 revenue and expenses budgets of companies subordinated to the Transport Ministry and the Economy Ministry were revised through several Government decisions and costs with goods and services planned for the second quarter, other than those concerning production, were reduced by 20%.

The Government decisions affected neither these companies' salary funds nor their number of employees set for this year. The level of average monthly wages in state owned companies were kept at the same level approved at the beginning of the year, namely 3,717 lei (EUR1=RON 4.2304) at aviation company Romavia, RON3,811 at international defense trade company Romtehnica, RON3,626 at Constanta Maritime Port Administration, RON3,821 at the Railway Assets Administration Company, RON7,318 at the Romanian Civil Aeronautical Authority, RON13,739 at the Romanian Air Traffic Services Administration, or ROMATSA, RON5,070 at airliner Tarom and RON3,738 at the Romanian Car Registry.

Average monthly wages of employees of power grid operator Transelectrica, hydropower generator Hidroelectrica, nuclear energy company Nuclearelectrica, power plants Turceni, Rovinari and Craiova, gas producer Romgaz, pit coal mining company CNH, lignite company SNLO SNLO, National Printing, and Romanian Lottery also remained unchanged.

The law reducing public spending, which was endorsed by the Parliament this summer, cut state employees' wages by 25%, but did not reduce salaries of employees of self-financed state companies.

The Government said in June that the budgets of state-owned companies would be revised, as a first step to cutting salaries, adding the measure would not affect companies that had already undergone restructuring.

The Executive also said that high salaries in state companies would be capped in solidarity with state employees who had their wages reduced.

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