#flashinfo, 4 june. CCIFER in dialogue with the Ministry of Labor and Social Protection on the strategy for human resources

On 4th June, CCIFER organized a new edition of Matinal Digital, a meeting dedicated to discussions on the strategies and public policies of the Ministry of Labor and Social Protection for human resources and economic recovery measures in the field of labor.

  • Our guest speaker was Mrs. Violeta Alexandru, the Minister of Labor, Ministry of Labor and Social Protection.
  • Moderator: Camelia NICOARA - Leader of the Public Affairs Working Group CCIFER

The opening remarks belonged to François Coste, President of CCIFER, that stressed the huge efforts currently done by the companies, together with the Authorities, to preserve employment during the sanitary crisis and the following recession; this endeavor to preserve employment and talents will also help the business environment rebound with agility during the recovery phase.

Besides flexibility of labor, François Coste presented other structural labor issues:

  • the deficit of manpower with continued emigration in a booming economy and with the territorial unbalances between supply and demand
  • the increase in staff costs too quick in the past years to be compensated by productivity gains; as employers, we understand and support the imperative of social cohesion and of convergence of Romania within EU, but we also need to preserve the competitiveness of Romania and our company margins in order to invest
  • another strategic labour issue is the social dialogue, which needs to remain closest from the reality of each company
  • the imperative to improve dramatically the efficiency of the inter-action of our companies with the State bodies, including in labour topics.

In the first part, the Minister of Labor presented the main economic recovery measures in the field of labor:

  • Because the Government have struggled to find solutions for the issues we exchanged upon, its purpose was to do the best to keep employees close to their employers. Financial support of unemployment regarding the cease of contracts. For the temporary suspension of the contracts –  help both the employees and the employers once the crisis will be over. The option chosen was to support technical unemployment.
  • 1.5 million Romanian employees have been helped – the professionals working besides the permanent working contract.

Romania has provided this help in a simple manner and quite fast, in only one month, and the impact of this governmental decision was perceived as good.

  • The technical unemployment measure will continue for those whose activities were ceased – for example, entertainment activities. There are restrictions in sports activities that suppose physical contact between participants, flying transportation, some restrictions regarding kindergartens and schools because it is difficult for children to adapt to the minimum protection measures.
  • The technical unemployment measure – that the Minister ranks as being quite positively managed will be continued in certain areas while restrictions are not still lifted.
  • The aim of the Government at this point is focused on helping employees and employers in reengage in their daily activities with all health measures that are necessary.
  • A ministry order issued two weeks ago provided several recommendations on the security/health measures and working environment in order to make working as effective as possible, even regarding telework.
  • It has been decided that for a number of 3 months there will be a governmental support up to 41.5% for each employee’s salary up to 81.5% of the average gross salary per economy for those who previously have been in temporary cease of their contract and who are back to work. This is a continuation of the previous support we provided. It addresses the needs of those who previously had the staff in technical unemployment. There will be a procedure of paying based on reimbursement. The companies will pay the salaries and contributions, and in 10 days the funds will be delivered.
  • The other measure that the Government has taken to stimulate employers considering hiring persons from 16 to 29 years old and over 50 years old. There have been numerous indications that these are the two main age groups that are highly exposed to unemployment. The Government support will be delivered for two months to keep those people hired.
  • This measure also targets Romanians who were working abroad whose contracts have ceased for reasons they are not responsible for – in order to work in fields they are qualified for.
  • The measure aims also to be combined with an administrative measure taken one week ago – providing all means for employers to train their staff. Given the changes the pandemics has generated in labour market there is required a rapid evolvement in improving professional skills in order to reach performance.
  • These measures will be continued with new ones that the Government is preparing for the next period. Like addressing the need of providing a more flexible working programme. The authorities have chosen as to deliver the first measures and work more with the private sector and trade unions, who are active in the discussion on providing more flexibility in the working relation between employers and employees.

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