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August 2, 2021

Draft amending Labour Code reduces flexibility of working conditions, say representatives of French, German investors

The draft amending the Labour Code is drastically reducing the flexibility of working conditions, leading to a decrease in the competitiveness of companies and of Romania, and may lead to the shutting down of some companies, renouncing investments and the cancellation of a significant number of jobs, shows a joint release signed by the French Chamber of Commerce, Industry and Agriculture of Romania (CCIFER) and the Romanian-German Chamber of Commerce and Industry (AHK Romania).

“From our standpoint, if these [Labour Code amendments, under debate in the Chamber of Deputies] are passed, they will not bring benefits to Romania’s economy and will endanger it as well, with the risk of shutting down some companies, renouncing planned investments and, consequently, cancelling a significant number of jobs and thus higher unemployment,” the release reads.

According to the two chambers of commerce, the return to a more rigid legal framework than that in 2011 is a measure profoundly unadjusted to the current economic realities. The representatives of German and French investors in Romania say, in context, that the proposal to reintroduce the collective labour agreement at national level may lead to the existence of two distinct parallel regulations applicable nationwide (the Labour Code and the national collective labour agreement) and consider the proposal unacceptable given that the double regulation in the past has created an endless number of interpretation and application problems and “unnecessary” debates.

“We believe that a new national collective labour agreement will not draw investments and create new jobs. Bargaining at unit level is and must remain the most important and effective instrument for working conditions adapted to a concrete situation,” said AHK Romania representatives, according to Agerpres.

In turn, CCIFER representatives request a real dialogue on the Labour Code.

CCIFER and AHK Romania include over 1,000 French, German and Romanian companies, with some 350,000 employees. Over 25pct of Romania’s trade exchanges are conducted with Germany and France.

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