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December 6, 2021
BUSINESS

Collective redundancies in 2014 at CFR Marfa

Employees who are made redundant will receive an additional monthly income after their labor contract has been terminated.

Based on previous commitments agreed upon with international financial bodies, the National Freight Railway Company – CFR Marfa SA will be undergoing privatization until May 2015. As a result, the company will be making collective redundancies in the course of 2014. In August, when CFR Marfa was in the process of privatization, the government decided not to grant additional monthly incomes to all employees who had been made redundant by state companies until they should find a new workplace, but only to those employees who were subject to collective redundancies by specific companies including CFR S.A. and CFR Calatori, with the exception of CFR Marfa. However, the government will approve an exception to this rule by emergency ordinance, according to which the monthly income will also be granted to employees who were made redundant by CFR Marfa, Mediafax informs.
Pursuant to the law applicable so far, employees who are made redundant receive unemployment benefits, an additional monthly income, and compensatory income granted in accordance with contractual labor provisions that apply to each company in particular. The additional monthly income is determined concomitantly with unemployment benefits and is equal to the difference between the individual net average wage of the last three months prior to the redundancy – determined based on clauses under the individual labor contract, but no higher than the national net average wage for January of the redundancy year, and announced by the National Institute of Statistics – and the value of unemployment benefits.
On the other hand, a document published yesterday by the Ministry of Public Finance, on November 30, 2012, CN CFR SA was scheduled to receive RON 694,686.68 thousand in debts from the National Railway Passenger Transport Company, hotnews.ro informs. This has worsened the company’s financial situation, negatively impacting CNCF CFR SA’s ability to pay the debt and other loan-related costs (insured with own resources). In order to maintain economic and financial balance at CNCF CFR SA – an objective the Romanian government has undertaken through a Letter of Intent dated September 12, 2012 – a series of measures was taken that includes paying the due obligations to economic energy providing agents recorded in company accounting books before March 31, 2012, the document shows.
Consequently, a “bridge-loan” was granted from privatization deposits registered in the State Treasury’s general current account, but it was subsequently replaced with another loan contracted by CNCF CFR SA from the European Bank for Reconstruction and Development, secured by the state and worth up to EUR 175 million. If any of the clauses agreed upon with EBRD or any of the deadlines convened under both the Loan Agreement and the Security Agreement is not complied with, a 3.1% penalty in addition to standard costs will be applied to the Loan Agreement.

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