Government lays off over 10,300 rail workers

Over 10,300 railway companies' workers will be laid off and paid the double of the net average wage at the data when their employment is discontinued, the unemployment benefit, as well as an additional monthly income for a period of 20 to 24 months according to the worker's length of employment, under a draft ordinance developed by the Transport Ministry, Mediafax informs.

Most of the employees will be laid off from CFR Freight (6,700), CFR Passengers (1,032), the CFR Carriage Servicing and Maintenance Company (800), CFR S.A. (600) and the CFR Locomotive and Equipment Maintenance and Servicing Company (500). Further layoffs are expected at CFR Electrification (236), the CFR Brasov Locomotive Servicing Company (221), the CFR Ticketing Company (89), the Filaret Printing House (44), the CFR Sleeping, Restaurant and Bar Carriages Company - GEVARO (44), the Railways Informatics Company (38), the Railway Mechanical Maintenance Company (23) and the Greenhouses and Nurseries Company (15).

Upon the termination of their individual labour agreement, laid off workers will receive an amount twice the value of the net average salary reported for the month of January of that year by the National Statistical Institute, the unemployment benefit and an additional monthly income according to a draft ordinance prepared by the Transport Ministry. All laid off people will also benefit from pre-layoff service provided by the National Employment Agency.

The announced layoffs in the railways sector will add RON 55.3 M to the existing unemployment benefits spending in 2009, RON 168.5 M in 2010 and RON 135.2 M in 2011.

The same draft ordinance also states that the economic and financial circumstances of the railways companies have been severely affected by the economic crisis, the direct manifestation being the plunging demand for transport services in general and for railroad transport services in particular beginning in the autumn of 2008 and sharpening in 2009.

The relevant ministry explains that, in such a context, urgent railroad transport restructuring measures are urgent in order to remove losses and make operations cost-effective on a long term while also providing social security to workers facing redundancy.

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