Controversy around the unified pay scale bill

The government, the opposition and the trade unions all want a law that unifies public sector pay scale, but disagree on how this can be achieved.

Bogdan Matei, 17.05.2017, 13:17

Yet to be reflected in the living standards of ordinary Romanians, the spectacular economic growth touted by statistics has fuelled people’s expectations regarding higher pay. At times described as the labour market’s Cinderella and at other times as a privileged group, budget sector employees were the first to fall victim to salary cuts back in 2010, when the economic crisis also hit Romania.

Today, they see it as their right to benefit from salary adjustments, increases and bonuses. The government made up of the Social Democratic Party and the Alliance of Liberals and Democrats as well as the right-wing opposition have all promised public sector employees a law that would unify their pay scale, but disagree over its provisions.

The Social Democrat labour minister Olguta Vasilescu, who attended the debates of the Senate’s labour committee on Tuesday, presented a bill endorsed by the government and 205 MPs from the ruling parties. She said the changes are obligatory, given that the law currently in force is to blame for a lot of inequality and an exodus of Romanian doctors abroad.

Olguta Vasilescu: “The bill provides for an average 56% rise in public sector salaries, including a significant rise of more than 100% for the lowest salaries and a lower increase for top earners, in order to make a needed distinction between the different categories of employees and respect the principles of equality and non-discrimination.”

The opposition agrees on the need for a new pay scale law, but believes the bill proposed by the leftist government will lead to lower salaries for some categories of public sector employees. The Liberal senator and deputy chair of the labour committee Carmen Harau.

Carmen Harau: “The bill will lead to significant salary cuts. I would like to warn that the 32 pieces of legislation in place that have resulted in higher salaries but which are now to be scrapped under the new bill, in violation of the Constitution, will generate an avalanche of court cases.”

This view is shared by the leaders of the main trade union confederations who say that certain provisions of the bill will lead to salary cuts, while others are simply unconstitutional. The leader of the Cartel Alfa trade union confederation Bogdan Hossu explains:

Bogdan Hossu: “We do not want this bill to be vulnerable in court. Another fundamental problem is that people are afraid that after the law comes into force, whether it’s July 1st for some employees or January 1st 2018 for others, their salaries will be in effect lower than they are today.”

Debates on the new bill continue in Parliament, while some public sector employees have taken to the streets. Police employees were the first to stage a protest in March. This month, air traffic controllers and Environment Guard employees staged warning strikes. A few days ago, border customs employees and the finance ministry staff staged spontaneous protests that may well turn into all-out strikes unless their concerns are addressed.