The government prepares to restructure 18 state companies

The representatives of employees working for the National Railway Company in Romania (CNCFR) are meeting today with the managers of the three railway divisions to discuss the plan for restructuring the activity in the field. According to a report sent to unions, the Ministry of Transportation is recommending the layoff of some 12,000 people of a current total 76,000 employees, something the latter consider "unacceptable," as well as a cut in salaries for remaining employees, the President of the National Commercial Movement Railway Federation (FNFMC), Gheorghe Popa, told Business Standard.

"This number came as a shock to us, especially because layoffs and salary cuts were the two major points on the restructuring plan agenda of the three railway companies. We expected that railway infrastructure rehabilitation and the alignment to European standards would be the top priority of the ministry," Popa added. In the event that 12,000 employees are laid off, 15 percent of the trains would stop circulating, and several train stations would have to be closed, Popa added.

The decision is the result of plans announced by Prime Minister Emil Boc's government to cut expenses for public system employees by 20 percent. Moreover, the Ministry of Economy has also announced that 18 state-owned companies will be subject to a 2009-2012 restructuring program, and that the number of persons to be laid off will be announced later.

Business Standard