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March 16, 2023

LabMin Budai: Law and budgetary impact, necessary steps in solving inequities in pension and salary system

The inequities in the pension system and in the salary system can be solved if two important steps are made, the first step being the law, after which the budgetary impact is needed, said on Wednesday the minister of Labour, Marius Budai, at an event organised by the European Trade Union Confederation (ETUC), in partnership with the National Trade Union Bloc (BNS).

“As you know, these two laws were put, unfortunately, in parentheses, plastically speaking, because if we had gone with the Salary Law at the end, now the agreements on this law would have been much smaller and would have had a much smaller budgetary impact. If the Pension Law had been applied, part of the inequities, if not all, because we cannot have the claim that they are all perfect, they are perfectible, part of the inequities would have been solved, part of the budgetary impact would have already been passed and the subsequent budgetary impact would certainly have been less. We have to see in the current conditions, in the conditions of the current global economy and studying very well macroeconomically the figures at the country level, which is the period in which Romania can afford to solve and bear this impact. They are certainly listed in the National Recovery and Resilience Plan, and these reforms will be carried out in time, as the Ministry of Labour has so far carried out all its reforms,” Marius Budai stressed.

The minister of Labour participated in one of the two thematic workshops within the programme entitled “The future of European funds for cohesion and fair transition: with or without workers?”.

Asked if he agreed with the Liberals’ proposal to reduce the social contribution from 25 pct to 20 pct, the Labour minister stressed that there was a need to mention where the funds would be taken from.

He stressed that it is a political coalition, “made up of parties that have different directions as well, but at the dialogue table everything can be resolved”.

“Here, too, I was very happy that the unions acted on, because they talk about human resources and jobs, to be present also the employers. It is best when you have the dialogue, but the dialogue should be honest,” Budai added.

At the same time, the minister of Labour said that it is desired to launch more applications to be included in a service hub at the Ministry of Labour.

“I want, for example, the registration of an employment contract to be done from the phone. All these things need to be discussed later, finding solutions. Applications can be made. We have intelligent people in Romania and we will implement these projects to support employers and employees as well,” the minister was quoted as saying.

Asked if an application will be launched for the employer in order to be able to make complaints, the minister of Labour said that such platforms must have the first purpose of harmonizing the discussions between employers and employees.

About the labour force crisis, which is one of the main topics discussed at the event, the minister of Labour said that a joint effort is needed in this regard, stressing that the technological tuition must be an extremely important chapter in the Education Laws.

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