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Romania government, trade unions reach compromise solution on salaries

de V.O.
Miercuri, 16 iulie 2008, 15:52 English | Business

Romanian prime minister Calin Popescu Tariceanu accepted during a meeting with trade union leaders on Wednesday to increase the minimum salary to 540 Romanian lei (RON). But the boost will apply starting October 1 instead of July 1 this year, as unions have demanded. Tariceanu also promised the minimum salary rise to 600 RON starting January 1, 2009.

Trade union representatives have yet to announce whether they accept the government offer.

Tariceanu said increasing the minimum salary couldn't be done before October 1 because higher prices for electricity and natural gas, applied starting July 1, would produce a pulse of inflation, according to a governmental press release.

The government would propose a series of measures to form the basis for a three-party deal between the government, trade unions and employers' unions to regulate the minimum gross monthly salary rises and narrowing differences between top and lowest salaries in the economy on the medium and long term, with a horizon set for 2014.

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