President Nicusor Dan stated, regarding a possible increase in the minimum wage, that it is possible that by forcing a minimum wage that is too high, some activities will become uncompetitive, and thousands of people will lose their jobs.
Nicușor Dan, President of Romania PHOTO: X
“There is an absolutely necessary dialogue between the government, employers and unions. Beyond a possible legal obligation, there must be an opportunity discussion between the government, employers, unions on this subject. Obviously, everyone wants higher wages, but on the other hand, and I even had the discussion tonight, in Iasi, with the businessmen, it is possible that by forcing a minimum wage that is too high, certain activities will become uncompetitive in Romania and hundreds, thousands of people to lose their jobs”said the president Nicusor Dan, News writes.
He said he has not been asked to mediate between unions, employers and the government, but that he is available if asked to get involved.
“The discussion is absolutely necessary. To the extent that my person is needed to mediate, I am available. For the moment I have not been asked and I think the first step is for these three entities to meet”said the president.
Prime Minister Ilie Bolojan explained that an increase in the minimum wage in the near future would have chain effects on revenues in the public system, but also on some companies in the private sector.
He explained that in the IT sector or in construction, raising the minimum wage has no effect, but for a small factory in a small county a change in the minimum wage, ”which is not covered by economic reality”, closes that factory.
“We have dozens of examples like this. I’m not saying that the minimum wage in Romania is likely to ensure special comfort. But it has some effects. And then, what did we do? We discussed these aspects in the coalition. And by mutual agreement, I emphasize, we all agreed, let’s try to keep the minimum wage at the same level. If salaries are capped, let’s go with the same logic, that we don’t have much room to move”argued the prime minister.
