Loading ...Economy and Finance Minister Varujan Vosganian on October 4 warned that any wage increase approved for the public employees would trigger a wage increase in NGOs, national corporations and the private sector.
“A 50% wage increase for public employees, which will be followed by at least a 40 % increase in the pay for the employees in the non-governmental sector, will virtually deplete the investment pool and bring economic growth in 2009 down to 2%,” Vosganian said in a televised interview.
Vosganian argued that if the pay to public employees were to increase by 50%, the average gross income would go up to RON 3,000, which would generate an increase in the pay in the non-governmental sector, which in turn would lead to Romania losing at least 300,000 jobs in 2009.
“Employers will not be able to increase pay without laying off staff. The pay increases cannot be performed through a deficit, because companies cannot buy money on the market, and so they will have to pare down their investments,” said Vosganian.
Commenting on what was seen as the Government opposing claims for a 50% increase in teacher’s pay, Vosganian argued that the incumbent Government is the one that has done more for education than any of its predecessors.
Vosganian pointed out that in 2007, 5.2% of the Gross Domestic Product was earmarked for education and 6% in 2008. According to his reckonings, teacher’s pay has doubled over the past four years.
“In Romania, the wages of public employees have reached virtually equal levels. Doctors, teachers and public employees earn RON 2,000 on the average. Anybody can realise that any pay increase today, when all is equal, will certainly trigger pay increases for other categories as well. It is very difficult to me, as the finance minister, to tell you what would happen if teacher’s pay increased, because teacher’s pay cannot be increased alone,” said Vosganian.
Prime Minister Calin Popescu-Tariceanu is expected on October 6 to meet Governor of the National Bank of Romania (BNR) Mugur Isarescu to analyse the situation generated as a result of the Government’s decision to increase teacher’s pay by 50%, following a meeting on October 4 of the finance, education, health, public administration and interior ministers.
The Chamber of Deputies on September 30 unanimously approved a draft law concerning the increase by 50% in the teacher’s pay.
The Chamber of Deputies on September 30 unanimously approved a draft law concerning the increase by 50% in the teacher’s pay.
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