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Romania Sacks Over 10,000 Railway Employees

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.
Romania Sacks Over 10,000 Railway Employees
05 oct. 2009, 14:03, English

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).

Upon termination of their contract, employees will get double the average net salary per economy set by the country’s statistics institute for January, along unemployment benefits and a monthly income, which is the difference between the employee’s net monthly wage for the past three months, but no more than the average wage per economy, and the unemployment aid. This monthly income will be granted for a period of 20 to 24 months, depending on seniority.

The decree sets layoffs are to be operated by December 31, 2012.

Cutting jobs in the railway sector will increase the country’s costs for the unemployment budget by 55.3 million lei (EUR1=RON4.2670) in 2009, RON168.5 million in 2010 and RON135.2 million in 2011.

The decree drafted by the Transport Ministry motivates the need for layoffs saying the economic crisis has deeply affected the railway sector and railway transport demand has started decreasing in autumn 2008 and plummeted in 2009.

According to data provided by unions in April, CFR Calatori employs 16,986 people, CFR SA employs 28,045 people and CFR Marfa employs 17,863 people.

The Transport Ministry has previously said it planned to can 11,000 jobs in the railway sector.