Labor unions call for minimum wage hike in 2017, while companies in Romania oppose it

Labor unions asked on Monday for the increase in minimum wage in 2017 by RON 200, but the representatives of business associations oppose it due to the election campaign context and because an impact study hasn’t been made yet.

The Labor Minister presented simulations that show that the micro-enterprises and the SMEs are the most vulnerable in the case of an increase in the minimum salary.

The unions confederations proposed the Government the increase in the minimum wage from RON 1,250 to RON 1,350 or RON 1,400 or even even 1,450, according to Agerpres.

At the highest value, proposed by Cartel Alfa trade union, the increase would be of RON 200, meaning an increase of 16 percent compared with the current level.

At an minimum salary of RON 1,450, the employer might pay RON 1,783 including the social contributions and the employee might get a net salary of RON 1,065.

Four patronages confederations attended the Council from Monday: the General Union of Industry Workers from Romania, the National Council of SMEs, the Union Confederation “CONCORDIA”, the National Confederation of Romanian Employers and the Romanian National Employers’ Association.

„The wages increases shouldn’t be decided in the elections period and for political reasons, but based on multiple implications at macroeconomic level and on the labor market after several negotiations between the social partners aiming to reach an agreement,” say the the associations.

„The gross minimum wage at country level increased this year by 19 percent starting May 1, according to the Government Decision 1.017/2015 and an year hasn’t passed since this important growth, which wasn’t correlated with the labor productivity,” added the business assciations.

Georgiana Bendre