wage cuts

Romanian police officers will reduce their activity as of Monday, September 20, in protest to the 25% wage cut imposed by the Government in July, union leader Marian Gruia said Wednesday.

Over two thirds of Romanian say they could deal with a 25% wage cut for three months at most, considering 75% of people’s savings consist of two months’ salary at most, according to a survey conducted for the World Bank by the Romanian Academy’s Institute for World Economics.

Romanian railway workers threaten to block trains if their wages are cut 25%, as Prime Minister Emil Boc announced Wednesday, union leader Iulian Mantescu said Thursday.

Romanian Prime Minister Emil Boc on Wednesday called for 25% wage cuts for employees in state-owned companies, including the country’s state-owned banks, Eximbank and CEC Bank.

Romanian Senate Chairman Mircea Geoana stated Sunday that the International Monetary Fund experts “clearly” said the Romanian Government will have to increase taxes if planned salary and pension cuts prove ineffective in point of slashing public spending and implicitly, reducing the budget deficit.

Restructuring Romania's public sector in 2010 will increase the wages of those that will remain in the system, adding that current wages will not be lowered after the unitary pay law is enforced, said Valentin Mocanu, state secretary with the Romania's Labor Ministry.