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Bucharest
March 6, 2021
BUSINESS

2,500 employees of CFR Marfa to be released

CFR Marfa will most likely terminate the contract of 2,500 employees, said PM Victor Ponta who claimed this is the price for the fact that the Government was “sabotaged” last year in the attempt to solve the company’s problems.
In June 2013, GFR company owned by businessman Gruia Stoica emerged winner in the privatisation process of the railway company, offering EUR 202 million for 51 percent. The transaction was not concluded by the deadline on October 14 because some creditor banks of CFR Marfa did not approve the change in the shareholders and the Competition Council did not have the necessary time to have a say in the operation.
The privatisation of CFR Marfa represented then a dispute topic between President Traian Basescu and PM Victor Ponta, as the head of Government asked that the sale of the company should be reviewed by the Supreme Council of National Defence led by Basescu, and the president asked that Ponta should assume responsibility for the privatisation.
Two weeks ago, the minister of Transports at that time, Dan Sova, announced that CFR MArfa will start to lay off more than 2,000 employees due to the unfavourable financial situation as the railroad transporter runs the risk to remain without wages fund in August otherwise.
According to the budget of income and expenses for 2014, CFR Marfa expects that 6,376 employees will remain with the company. The budget includes severance packages of RON 16.8 million.
The Government pledged to the IMF to an aggressive restructuring of CFR company and to continue the process of privatisation with a strategic investor.

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