Protest at the Powder Factory in Făgăraş. Employees complain about insufficient fund for payment of salaries

Trade unionists from the Powder Factory in Făgăraş announced that they will protest for four days in the Capital, between November 25-29, due to “the ignorance of the political class and bad management”writes Agerpres.

Powder Factory from Făgăraș/PHOTO: Archive

The protesters will gather in front of the Ministry of Economy and the Romarm National Company. The reason why trade unionists are taking to the streets is because of the insufficiency of the fund for the payment of salaries.

“Despite the high orders, but also the legal provisions to protect the defense industry and its employees, the fund for the payment of salaries is still insufficient.

The gradual rectification and increase of funds for the initial salary cores from 84 to 120, and then to 130, represents a harmful practice both for the defense industry and for the employees. Since the end of last year, the real need for salary cores that had to be covered was known, but the ministry preferred a delayed, phased allocation, which left the employees in an uncertain situation.

The Ministry of Economy cannot invoke financial problems, because currently, the Făgăraş Powder Factory is not facing problems regarding orders, registering a profit rate of 7.9% of total revenues in 2024 according to the last rectification”support the trade unionists.

This is not the first protest

In February 2023, the factory employees took to the streets due to non-payment of salary rights related to the previous year. At that time, the union demanded compliance with the Collective Labor Agreement (CCM), but also with Law 232/2016 on the national defense industry.

On the same basis, the trade unionists took to the streets again this year, in January.

“The protest is the main way to solve the problems, while the dialogue with the Ministry of Economy (majority shareholder) and with CN Romarm SA is difficult to achieve.

The Făgăraş Powder Factory employs less than 200 people, and according to the latest budget and expenditure scheme (MMSS Order no. 3.113/2024), the average number of employees is 163. Either through bad will or incapacity, lately, annually, the number average number of budgeted employees (core) is below the actual one in the enterprise.

The union accuses that at the beginning of the year they received only 84 wage cores, far below the forecasted requirement for the full payment of wages. Along the way, following discussions with the Ministry of Economy, they reached 120, and following a subsequent rectification, they reached 130 (Romarm address no. 2963/13.11.2024)”the release states.

The defense industry, under special regime

The defense industry operates in a special regime, which allows for an emergency “restart” when demand returns. Factory employees benefit from job retention and a monthly fund covering salary entitlements. The fund is calculated by taking into account 75% of the gross average wage in the economy.

In this sense, say the trade unionists, art. 24 of Law 232/2016 provides that when the factory does not carry out activities due to a lack of orders, employees carry out equipment maintenance activities and benefit from amounts to cover salary rights.

“During the period in which employees with individual employment contracts of indefinite duration at economic operators with majority and/or full state capital in the national defense industry do not carry out activities due to lack of orders or contracts, they perform maintenance, conservation, repairs and maintenance of production capacities, administrative activities and other specific activities and benefit from amounts granted from the state budget, in order to cover salary rights and social security contributions due by employer”they specify.

Therefore, the protest comes as a dissatisfaction with the lack of a solution, in the context in which the union submitted addresses to the Ministry of Economy and the prefect.

“The need to resort to protest to solve a problem that could have been solved immediately raises questions about the good intentions of the governors. The union, repeatedly, submitted addresses to the prefect (union address no. 28/18.11.2024) or the Ministry of Economy to solve the problem.(…) It is worrying that where there are only 163 employees, a modest number of the total national economy, the ministry ignores the signals sent by the union repeatedly and offers partial solutions only after repeated calls”the statement also states.

Until the protest, the Free Trade Union Nitramonia Rompiro Făgăraş is open to negotiations, and if no convenient solution is found, the protest will be resorted to.

The event will take place simultaneously in front of the Ministry of Economy and the Romarm headquarters in Bucharest, between 10:00 a.m. and 1:00 p.m.

The Free Union Nitramonia Rompiro Făgăraş from the Făgăraş Powder Factory is affiliated to CNS Cartel Alfa.