Foreign investors ask for labour market flexibility
The Foreign Investors Council have asked for the amendment of the Labour Code and stated that, if the labour market were more flexible, approximately 90,000 people could find a job.
Articol de Cora Enache, 08 Decembrie 2010, 10:08
In the near future, almost 90,000 people could find a job, if the labour market were more malleable, said the Foreign Investors Council comprising over one hundred international companies that hold two thirds of Romania’s foreign investments.
Tuesday, members of the Foreign Investors Council pleaded for amending the current Labour Code on various current legislative aspects.
Even though trade and employer unions refused discussing the changes with the labour minister at the end of last week, investors believe that new regulations for employers and employees are required, in order to sustain the intention to produce almost two billion euros for the Romanian economy in 2011.
Foreign investors ask for the Labour Code amendments to include, first of all, labour market flexibility – people should be easier to recruit and discharge.
Also, companies want a legislative stimulation for temporary work, and the warning time for resignations or discharges to be raised to two months, so that the employee could find a new job and the employer a replacement.
Foreign investors want to oust collective labour agreements at branch or national level, when there’s already an existing individual labour agreement, as explained by FIC board member, Shahar Shai.
‘If we talk to an employee about hiring him, everything must be clear and agreed upon from the start.’
‘A foreign investor can’t afford a branch legislation or collective agreement.’
‘Here’s one more example: a production facility in Bucharest and Călăraşi need not share the same contract,’ Shahar Shai explained.
An efficient employee is better than ‘seniority’
Foreign investors also want the law to include performance expectations to be able to keep efficient employees and not the ones with seniority.
Despite discontent with the Labour Code, foreign investors in Romania believe that there is potential to attract foreign capital.
‘We think that the European fund is the first thing, which we think hasn’t reached its full potential, but we do hope, that gradually, it will be used more’ said Shahar Shai.
He added that Romania could also improve its infrastructure and agriculture.
‘Romania has good human resources. I believe that any investor here has found the right people for the job.’
‘Romania’s position, between West and East, has a competitive advantage to other countries’, Shahar Shai stated.
If measures for labour market flexibility, competition and lowering black market workforce are included in the law, foreign investors estimate that Romania will attract big money on a long term.
Translated by Ciocănel Tudor
MA Students, MTTLC, Bucharest University
