CCIFER and AHK: Labour Code amendments weaken Romania's competitiveness

French Chamber of Commerce and Industry of Romania (CCIFER) and Romanian-German Chamber of Commerce and Industry (AHK Romania) expressed public concern in early October about the draft amendment to the Labour Code within a press release issued to The Diplomat – Bucharest

2015-10-18 18:45:12 - From the Print Edition

Their representatives point out that the draft amendment to the Labour Code, currently in legislative procedure in the Chamber of Deputies, reduces the flexibility of working conditions, leading to decreased competitiveness of the companies and Romania overall. From their point of view, if the changes are adopted, they may bring benefits to the economy of Romania, but they will also endanger it by generating the risk of closure of companies, abandoning planned investments and, as a natural consequence, the abolition of a significant number of jobs and resulting increasing unemployment.
"We want a chance for a real dialogue about the Labour Code - its impact on Romania′s attractiveness and competitiveness of companies is essential," said CCIFER representatives within the release. "Our experts have developed a number of concrete proposals for improving the competitiveness of Romania. This bill is a step backwards; a setback that could cost many jobs in industry and services." The report also read that the current legal framework, in force since 2011, was well-received by the private sector and has led to an increase in employment and a fall in unemployment, to a positive economic growth, an increase in the minimum and average wage and a drop in labour disputes.