BUSINESS

CDR: Labor legislation could tip the scales of investments in Romania

The Coalition for the Development of Romania (CDR) reiterates the crucial importance that labor legislation has when it comes to supporting sustainable and competitive economic development. Likewise, CDR considers that maintaining the stability and predictability of labor legislation is essential for having a healthy business environment capable of supporting Romania’s economic growth.
The members of CDR have taken note, with concern, of the recent proposals on modifying the labor legislation, particularly of the draft law on modifying the Labor Code, a draft law proposed by the National Union Bloc, and they want to draw attention to two aspects:
First of all, the proposed changes do not take into account the benefits brought about by the reformation of the Labor Code in 2011, so that, once adopted, the changes would mean that the legislation would go back in time. The old Code deterred salaried labor and destroyed millions of jobs, while the Code currently in force – much more flexible – has allowed the creation of over 300,000 jobs since its introduction in 2011. Reverting to the previous stipulations and unilaterally promoting even more restrictive stipulations such as those included in the draft does not have as an effect the rendering of labor relations flexible so as to be adapted to the current economic and social conditions. On the contrary, the amendments proposed by the National Union Bloc lead to a rigid labor market and send the employee-employer relationship back in time to the standards of the 1990s.
Secondly, the Romanian Senate’s tacit adoption of the draft law on modifying the Labor Code represents the lawmakers’ lack of responsibility toward an issue with vast implications on the whole economic environment. CDR insists on the fact that any modification of the labor legislation (Labor Code) should be the result of thorough consultations, with all interested parties, and of a consistent social dialogue that would seek to attain consensus between social partners.
Consequently, CDR asks for the avoidance of any measures that disregard economic realities and demographic trends, but especially of those liable to destabilize the labor market and the consolidation of the Romanian economy’s competitiveness.

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