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January 18, 2022

Ten days of compulsory holiday would resolve state salary budget issue

Sending public employees on an unpaid holiday of ten days per year would be one of the easiest ways to cut budgetary personnel spending without generating deep negative social and economic effects, private analysts and managers say, according to the ‘Business Standard’ newspaper.

In its bid to cut down spending, Government has so far looked into two alternatives: to cut salaries 20 per cent, which will equal savings worth EUR 2 bln in 2009, or laying off 20 per cent of the civil servants, which would bear major negative economic consequences. ‘It is a temporary measure, which only affects staff incomes, without bearing an effect on salary level,’ explained former finance minister Daniel Daianu. Shorter working days, and not an unpaid holiday, was the alternative proposed by Cartel Alfa delegates at yesterday’s meeting with the IMF officials. Financial expert Bogdan Baltazar however believes Romania needs a budgetary work force leaner by 20 per cent, which he sees as ‘vital’. The managers questioned by ‘Business Standard’ say such measure is much better than none at all, yet decisions should take into account calculations that are both correct and tailored to each sector.

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