Academy of Romanian Scientists

Spring Session of Productivity Commission - Dacia Renault 05-

07.05.2011

Lobour Code: past, present and future

In the last 8 years, from 2003- the year of adopting of new labour code,
this was modified until now from more then 9 times, but the strongest
modifications was made by OUG 55/2006 and Law 40/2011 who made more
then 75% changes from the first version of Labour Code.

Is very true the fact that during last 8 years also society had change, we
pass from economical increase to a depth financial crises who change the view
of employers and also to employee.

The need of flexibility of rules was certain, financial crises show us the
limits of actual rules, a part of representants of emplyers said in 2009 that the
rigidity of Labour Code was one of the source of unemployment and
bankruptcy.

Without a real audit of labour legislation we can’t say if is true or not, but
the numbers show the highest rate of unemployment from 2003, until now was
in march 2010, 8,6%. In march 2011 this was 6,6%, so was decrease 2 procent,
before the new flexible rules to be apply. In same time in december 2008 the
unemployment rate was 3,4%, so when the market had a flood of investments
and the economy was at the highest level from the last 50 years the labour
market wasn’t modified, to create new flexible form for new types of contracts
of employment.
 But now, during economical contraction the guvernments decided to offer
more flexibility. New rules offer more dynamic vision of labour market, the
individual contract of employment on indefinitely term remain at the level of
declarations the base of labour market but incresing the duration of individual
contracts of employment on fixed term from 24 months to 36 months and even
more (if is the need and parts accepted), incresing the trial perioad from 30 to 90
days for executive and from 90 days to 120 days for management who can be
finished with only a simple notification will create a real problem on long terms.

Using financial crisis for cover the real problems of social dialogue at
micro level, the new rules will deep this fracture of dialogue, who will create the
precarity level of labour market with low wages, low posibility to negociate
rights, in terms of force, where all society will be losing: the employee will have
lower level of life, will spend low on cheaper products, and all economy will
suffer.

Flexicurity is a long debate concept who is based on principle of

flexibility of market in same time with security of employee. Unfortunately, the
romanian guvern decide only to do half of this, to flexibility of market.

In this new conditions Romania maybe will be attractive for new

investors, but is important not only the quantity of this, also the quality of them.
If we decide to be attractive for investors who had a short terms vision and the
only priority is to can dismiss easily we need to think twice. Creating pools jobs
in smalls comunities who became easily volatile we just create a depth structural
unemployment who will affect all region’s economy.

Without a long term vision of active actions of employment politics the

new rules of flexibility Labour Code will became contraproductive. We need a
good prepared labour force, with know-how of new tehnologies, adaptable of
new, for who the term of long life learning to don’t be only words. But for this
we need a better school’s curicullum, adaptable of market needs: high schools
for tehnologies and vocational schools.

Which motive I have to don’t agree with new rules? Are few important I
think:

- Increasing too much the trial period – you don’t need 3 months to observe
if a worker aren’t professional prepared for a job, but you can use this
 motive to renounce at him after you solve a temporary problem who
appear in your activity.

- Temporary working agency was a chapter modified in detail, but aren’t

totally harmonize with Directive 2008/14/CEE for example temporary
working agency are in vision of Romanian legislation only company not
also physical person like in Directive.

- The rules for collective dismiss aren’t used also for employee from public
sector, this will create discriminations.

- After a collective dismissal was abrogate the rule from which you can’t
hire a new person minimum 9 months;

- The reference period for extra time are increase from 3 months to 4
months, for who the maximal period of extra time can be until 48 hours/
labour week;

- One minimum fraction of holiday can be at least 10 days from 15 days

until now;

- The burden of proof are now in the field of the plugger, who will agravade
the situation of emplyee, until now this was the burden of employer;

- All collective bargaining agreement will be finish from the power of low
at 31.12.2011, this act are a intruding of parts agreement.

Are also good parts in this new rules:

- The fight against black labour are increase, even apply the penalties also
to workers will decrease the numbers of complains and can create a biger
problems for the one who needs to pay 10 minimum wages, when sure
they accept black market only for lack of alternatives.

- Recurrence of graduate training;

- Creating the possibility to reduce the working week at 4 days during

contracting activities;

- Increasing the notice period from 15 days to 20 days for executive and
from 30 days to 45 days for management;
- Increasing the night growth from 15% to 25%;

- Recognize the all rights during trainings.

Dr.Jr. Denisa Oana Pătrașcu