Romanian trade unions call for minimum salary of 750 lei. Employers say first effect of a raise would be increasing unemployment in private sector

Vineri, 20 august 2010, 16:44 English | Business

Representatives of Romanian trade unions held talks with the Government on Friday, in which they said the minimum salary should be raise to 860 Romanian lei (RON), but that they only asked it to be raised to 750 RON. The talks come as a new version of the salary law is due to be discussed within the governing coalition on Monday. For 2011, salaries may be increased to only a part of the state employees who saw their salaries cut by 25%.

Trade union leader Dumitru Costin said that a substantial raise - to 860 lei - of the minimum salary was needed but that unionists understood such a raise was not possible. That is why they asked for a raise to 750 RON.

But employees disagree with such an idea. Cristian Pirvan, head of the Association of Business People, told EurActiv.ro/HotNews.ro that any shock for the private sector at the time being would have an immediate effect and that any unjustifiable raise of salaries would mean either an increase in prices or an increase of unemployment.

Labor minister Mihai Seitan said on Thursday that a single minimum salary would be applied to both state and private employees and would amount to somewhere between 600 and 700 RON.