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September 30, 2022
BUSINESS

Franks: If you raise salaries by 18 pc, you have to fire people

Romanians could have salaries higher by 18 per cent next year only if more people will be fired, Jeffrey Franks, the head of the International Monetary Fund Delegation (IMF) in Romania, said on the Money Channel, Realitatea.net reports. He however admitted that small raises are possible without the salary fund being affected.


This means that a salary rise of 18 per cent, as forecast by Democrat-Liberal Theodor Stolojan would not be sustainable.


Romania needs to create jobs for the unemployed, Franks also said, adding that “the unemployment rate began falling, although it remains high, which makes us concerned and we want Romania to create more jobs, in order that the labour market becomes more dynamic,” the IMF head said.


Stolojan said Monday that figures he had seen before point to salaries likely to only increase by 16-18 per cent, and not the 25 per cent that would allow them to get back to pre-cuts level. In 2010, the minimum salary will go up at a rate to match the inflation rate, with a significant proportion of this year’s cut to be made up for, Andreea Vass, an adviser to PM Emil Boc, said. Asked how many people would be laid off next year, she couldn’t put a figure on it. “The issue is being negotiated,” she said.


Former labour minister Mihai Seitan told Realitatea TV that the minimum salary might rise in 2011, yet by how many percentage points is yet to be known, and expressed hope government’s efforts would lead to a double digit hike. “I don’t believe we can say as of now how much it would rise percentage point wise. I hope government’s effort would lead to a double digit rise,” Mihai Seitan said.

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