Trade unions stage protests in Bucharest

Romanian trade unions and employers associations are contesting the economic and social policies of the Bucharest Government.

Bogdan Matei, 20.10.2017, 14:17

Fall has traditionally been a hot season in post-communist Romania. Ever since the early 1990s, October and November have been the months with most rallies, staged to demand wage increases. In spite of the fact that in time things have changed for the better in economic and social terms, and that the force of trade union actions has decreased significantly, a number of protest actions are being staged this autumn in Romania as well.

On Thursday the trade union federation Sanitas, representing healthcare workers, protested in central Bucharest against the changes brought to the salary law, to be enforced as of January 1st 2018, which they believe will diminish their salaries. The unionists demand the elimination of the 30% cap on specific bonuses and the full application of these bonuses for all healthcare, social assistance and also technical and administrative staff.

Also, they are opposed to the transfer from employers to employees of the obligation of paying social security contributions, which, in their opinion, would cancel the 25% salary increases granted under the new salary law. “For months on end, deputies and senators are doing nothing but simulate their interest in sectors that they themselves declared ‘of national importance’. Under the pretext of respecting the governing programme they pass measures that in reality prove to be to the detriment of the healthcare employees,” President of the Sanitas federation, Leonard Barascu has said.

After Thursday’s protests, Sanitas trade union federation announced they would decide on whether to call an all-out strike in the healthcare and social assistance field. With trade unions already in the streets, the government coalition made up of the Social Democratic Party and the Alliance of Liberals and Democrats is now risking to antagonize employers’ associations as well, after having announced that all employers in Romania will have to pay a 2% social solidarity tax from the salary fund, as of next year.

This new tax will apply at the same time with the transfer of the obligation to pay social and healthcare security contributions from the employer to the employee. The Finance Ministry has said in a communiqué that the level of this contribution has been set so as to ensure the amounts needed for the payment of social security benefits such as unemployment benefits and medical leave and also to cover the cost of labour accidents and professional diseases.

The President of the National Council for SMEs, Florin Jianu, says that the solidarity tax does not have a clear destination, unlike the contributions currently paid by employers. Introducing this new tax will impact the business environment while employers will have to pay more money to purchase the new accounting software, Florin Jianu has also warned.