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Romania - Compensation & Benefit Legislation

CAPITAL

Bucharest

 

CLIMATE

Temperate climate - cold, cloudy winters with frequent snow and fog; sunny summers with frequent showers and thunderstorms.

 

LANGUAGES

Romanian, Hungarian, and German.

 

LEGAL SYSTEM

Romania’s legal system is a former mixture of civil law system and communist legal theory. It is now based on the constitution of France's Fifth Republic.

 

CURRENCY

Romanian Leu (1 USD = 33,894.0 ROL as of March 15, 2002).

 

ROMANIA - COST-OF-LIVING

ERI's Relocation Assessor is a recommended source for cost-of-living data.

 

ROMANIA - EMBASSY/CONSULATES

U.S. Embassy at Bucharest

Tudor Arghezi 7-9

Bucharest, Romania

Telephone: [40] (1) 210-4042

Fax: [40] (1) 210-0395

http://www.usembassy.ro/ 

 

Embassy of Romania at Washington D.C.

1607 23rd Street N.W.

Washington D.C. 20008

Telephone: (202) 332-4846

Fax: (202) 232-4748

http://www.roembus.org/

 

ROMANIA - HOLIDAYS

 

ROMANIA - LEAVE

Annual Leave: Minimum 18 days paid annual leave each year.

 

Maternity Leave: 112 days – 50-94% of pay (paid by social security).

 

ROMANIA - MINIMUM AGE

The minimum age for employment is 16 years, but children as young as the age of 15 may work with the consent of their parents or guardians, although only "according to their physical development, aptitude, and knowledge." Minors are prohibited from working in dangerous or hazardous conditions.

 

Working children under the age of 16 have the right to continue their education, and the law obliges employers to assist in this regard.

 

(Section 6.d. Acceptable Conditions of Work, Romania – Report of Human Rights Practices, 2001, U.S. Department of State.)

 

ROMANIA - MINIMUM REMUNERATION

During 2001, the minimum monthly wage was raised from 700,000 lei (approximately $30) to 1.4 million lei (approximately $48). The minimum monthly wage does not provide a decent standard of living for a worker and family.

 

(Section 6.e. Acceptable Conditions of Work, Romania – Report of Human Rights Practices, 2001, U.S. Department of State.)

 

ROMANIA - REMUNERATION

ERI's Geographic and Salary Assessors are recommended sources for international remuneration covering 189 countries.

 

ROMANIA - REPORT OF HUMAN RIGHTS PRACTICES (2001, U.S. DEPARTMENT OF STATE)

Section 6 Worker Rights

 

a. The Right of Association

 

All workers except certain public employees have the legal right to associate freely and to form and join labor unions without previous authorization; however, there were reports that the Government restricted this right. Intelligence, Ministry of Defense, and Ministry of Interior personnel are not allowed to unionize. The majority of workers are members of approximately 18 nationwide trade union confederations and smaller independent trade unions. Trade unions may acquire property, support their member's exercise of their profession, establish mutual insurance funds, print publications, set up cultural, teaching, and research bodies, establish commercial enterprises and banks, and borrow money. No workers may be forced to join or withdraw from a union, and union officials who resign from elected positions and return to the regular work force are protected against employer retaliation. However, the International Confederation of Free Trade Unions (ICFTU) 2000 "Annual Survey of Violations of Trade Union Rights" reported that violations of trade union rights continued in practice. In September 2000, a trade union leader, Virgil Sahleanu of the Tepro steel mill in Iasi, was killed, allegedly because of a dispute with a new private owner. Also in 2000, Sabina Nicolescu, a trade union leader in a wool company, was beaten after receiving threats from the company owner. No new violations were reported during the year. The unions reported that the Government interfered in trade union activities, collective bargaining, and strikes. The requirements to register a union were excessive.

 

Past studies indicated that the labor legislation adopted in 1991 falls short of International Labor Organization (ILO) standards in several areas, including the free election of union representatives, binding arbitration, the financial liability of strike organizers, the restriction of eligibility for trade unions, and the restriction of eligibility for trade union membership and offices to "employees." Amendments in 1999 to the law on labor disputes brought some improvements and eliminated many restrictions, including widening the scope of the right to strike.

 

The collective labor dispute law defines the conciliation, mediation, and arbitration procedures under which strikes can be conducted. The law established tripartite arbitration panels, and the list of arbitrators must be approved by the economic and social council where trade unions and employers associations each have one-third of the membership; however, mediation capability has not developed fully. Local panels are poorly trained, and unions continued to take their cases directly to the Government for dispute resolution. Amendments to the labor law in 1999 widened the scope of the right to strike, although it continues to be difficult to hold a legal strike because of lengthy and cumbersome procedures. Union members complained that unions must submit their grievances to government-sponsored conciliation before initiating a strike, and that the courts had a propensity to declare illegal the majority of strikes on which they had been asked to rule. Judges, prosecutors, and related Ministry of Justice staff are forbidden to strike, along with Ministry of Defense, Ministry of Interior, and intelligence service employees. The Government concluded a Social Pact early in the year with national union confederations and employer associations; in return for promises regarding wages, pensions, and new labor legislation, the unions agreed not to stage national strikes. Although at times fragile, the Social Pact remained in place at year's end, and the Government initiated talks on its renewal. At least one labor confederation has stated that it is unlikely to renew membership in the Pact. The Social Pact did not prevent local unions from staging protests and strikes. In September 2000, amendments to the labor code permitted companies to claim damages from strike initiators if the strike is deemed illegal by a court.

 

The Government has promised to speed the privatization of state-owned companies; fearing loss of their jobs, some union workers held strikes protesting the potential sale of their companies, and others threatened strike actions if privatization occurs. Protest actions also were held demanding the cancellation of privatization contracts. The most significant of these were the Resita protests, which were accompanied by some instances of violence. Groups of union members protested against local authorities by damaging official buildings and harassing employees of the firm. The Resita steel company was purchased by a foreign company and has been the subject of major labor protests since January; the Government was attempting to mediate the labor dispute at year's end.

 

The Government occasionally interfered in strikes. For example, the Ministry of Transport attempted to intimidate the subway system union from striking during the year.

 

The law stipulates that labor unions should be free from government or political party control, a provision that the Government generally has respected in practice. Unions are free to engage in political activity and have done so; for example, during the 2000 elections, the National Confederation of Trade Unions (Fratia) and the National Union Bloc openly supported the PSD party.

 

Labor unions may form or join federations and affiliate with international bodies. The National Confederation of Trade Unions-Fratia and the National Union Bloc are affiliated with the International Confederation of Free Trade Unions and the European Trade Union Confederation. The Confederation of Democratic Trade Unions of Romania and Cartel Alfa are affiliated with the World Labor Confederation. Representatives of foreign and international organizations freely visit and advise domestic trade unionists.

 

b. The Right to Organize and Bargain Collectively

 

Workers have the legal right to bargain collectively, but collective bargaining efforts are complicated by continued state control of most industrial enterprises and the absence of independent management representatives. Although the law supports collective bargaining as an institution, the contracts that result are not always enforceable in a consistent manner. Basic wage scales for employees of state-owned enterprises are established through collective bargaining with the Government. Public employees may bargain for everything except salaries, which are set by the Government. Unions claimed that downsizing decisions resulting from agreements with international financial institutions have violated labor agreements. In one case, gas and oil unions claimed that a budget approved by the Government for state-owned gas and oil companies violated its labor agreement and filed a court claim against the Government.

 

Antiunion discrimination is prohibited by law, and the Government generally respected this prohibition in practice.

 

Labor legislation is applied uniformly throughout the country, including in the five free trade zones.

 

c. Prohibition of Forced or Compulsory Labor

 

The Constitution prohibits forced or compulsory labor; however, trafficking in women for sexual exploitation is a problem (see Section 6.f.). The Ministry of Labor and Social Protection is responsible for enforcing the prohibition against forced labor.

 

The Constitution prohibits forced and bonded labor by children; however, trafficking in girls for prostitution is a problem (see Section 6.f.).

 

d. Status of Child Labor Practices and Minimum Age for Employment

 

The minimum age for employment is 16 years, but children as young as the age of 15 may work with the consent of their parents or guardians, although only "according to their physical development, aptitude, and knowledge." Minors are prohibited from working in dangerous or hazardous conditions. Violations of the child labor laws are punishable by imprisonment for periods of 2 months to 3 years; however, there is no recent evidence of anyone being charged or convicted under this law. Working children under the age of 16 have the right to continue their education, and the law obliges employers to assist in this regard. The Ministry of Labor and Social Protection has the authority to impose fines and close sections of factories to ensure compliance with the law. There is no recent evidence of anyone being charged or convicted under this law.

 

A department in the Office of the Prime Minister is responsible for child protection. Local organizations were established in the counties and the city of Bucharest to enforce child welfare legislation. The roles and responsibilities of the several agencies that enforce child labor laws remain ill defined, and these laws often have not been enforced.

 

There are no accurate statistics of the number of illegally employed children; however, there is recognition of the problem. The prevalence of child labor, including begging, selling trinkets on the streets, or offering to wash car windshields, is widespread in the Roma community; these children range from 1 to 18 years of age. In March 2000, the ILO and the Ministry of Labor and Social Protection agreed to establish an International Program for the Elimination of Child Labor. A national steering committee was formed, and several ILO-funded programs began to raise public awareness, identify the nature and extent of the problem, train officials to monitor and investigate child labor, build the capacity of governmental and nongovernmental agencies, and prevent increases in child labor; however, no concrete steps were taken by year's end.

 

The Constitution prohibits forced and bonded child labor; however, trafficking in girls for prostitution is a problem (see Section 6.f.).

 

e. Acceptable Conditions of Work

 

Most wage rates are established through collective bargaining at the enterprise level; however, they are based on minimum wages for specific economic sectors and categories of workers that the Government sets after negotiations with industry representatives and the labor confederations. Minimum wage rates generally are observed and enforced. During the year, the minimum monthly wage was raised from approximately $30 (700,000 lei) to approximately $48 (1.4 million lei); the minimum monthly wage does not provide a decent standard of living for a worker and family. Prices for utility services such as water and heating continued to rise; however, basic food and pharmaceutical products still were subject to price ceilings. Housing is no longer subsidized.

 

The Labor Code provides for a standard workweek of 40 hours or 5 days, with overtime to be paid for weekend or holiday work or work in excess of 40 hours. It also includes a requirement for a 24-hour rest period in the workweek, although most workers receive 2 days off per week. Paid holidays range from 18 to 24 days annually, depending on the employee's length of service. The law requires employers to pay additional benefits and allowances to workers engaged in particularly dangerous or difficult occupations. The Labor Code was scheduled to be revised in 2000; however, trade unions and business associations were not included in the drafting discussion, and no agreement could be reached on changes. New discussions, which included the unions and employers, commenced during the year; however, no new legislation was presented to Parliament by year's end.

 

Some labor organizations lobby for healthier, safer, working conditions on behalf of their members. However, neither the Government nor industry, which is still mostly state owned, has the resources necessary to improve significantly health and safety conditions in the workplace. The Ministry of Labor and Social Protection has established safety standards for most industries and is responsible for enforcing them; however, it lacks sufficient trained personnel for inspection and enforcement, and employers often ignore its recommendations. In 1999 a department was established within the Ministry to conduct comprehensive safety inspections. European Union funds have assisted in building capacity within the new department. Although they have the right to refuse dangerous work assignments, workers seldom invoke it in practice.

 

After an explosion killed 10 workers in the port of Constanta on June 5, workers at the shipyard protested against the lack of safety equipment and violations of safety procedures by management. A government delegation led by Privatization Minister Ovidiu Musatescu was sent to mediate talks between workers and management.

 

f. Trafficking in Persons

 

A law passed in November prohibits trafficking; however, trafficking in women is an underreported but serious problem. The law defines trafficking as the use of coercion to recruit, transport, harbor, or receive humans for exploitation. Coercion includes fraud or misrepresentation. Exploitation includes slavery, forced labor, prostitution, performance in pornographic films, organ theft, or other conditions that violate human rights. For minors under the age of 18, it is not necessary to prove coercion.

   

Romania is both a country of origin and a transit country for trafficked women and girls. The full extent of the problem is not known, since neither the Government nor NGO's maintain statistics on this problem; however, there is evidence that the problem is growing.

 

ROMANIA - SOCIAL SECURITY

Social Security Office of International Programs:

 

http://www.ssa.gov/SSA_Home.html

 

ROMANIA - STANDARD WORKWEEK

The Labor Code provides for a standard workweek of 40 hours or 5 days, with overtime to be paid for weekend or holiday work or work in excess of 40 hours. It also includes a requirement for a 24-hour rest period in the workweek, although most workers receive 2 days off per week.

 

(Section 6.e. Acceptable Conditions of Work, Romania – Report of Human Rights Practices, 2001, U.S. Department of State.)