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The Financial Oversight Authority (ASF) has hired law firm "Ţuca Zbârcea & Asociaţii", to advise it on labor legislation, during the restructuring process, according to some market sources.
Some voices from the ASF claim that this is intended to be a precautionary measure, should any its laid-off employees decide to take it to court.
The sources however are doubtful of the legality of such a contract, as an emergency ordinance of 2012 stipulates that authorities and institutions in the public administration are not allowed to acquire consulting, legal counseling or representation services, if they have employees with legal qualifications on their payroll, except "under thoroughly justified circumstances".
Others are saying that "given the low level of professionalism of the legal advisors in public institutions, it is a very good thing for them to work with outside lawyers, but price competitiveness and the actual work delivered must also be taken into consideration".
The Authority has proposed to its employees severance packages equivalent to 12 gross monthly wages for voluntary resignations and it seems that approximately 100 people have accepted the offer.
The number could have been far greater, but a few tens of employees with executive positions had a problem with the fact that they would have been required to pay an 85% tax on that amount right away, as a result of a decision issued by the Government last year.
Even though it has hundreds of employees, which it pays lavishly, the ASF has made it a habit to also hire outside consultants. In other words, to incur additional expenses.
Even so, the reorganization process seems to be in chaos.
First of all, PricewaterhouseCoopers Audit evaluated 205 employees with executive positions. Then, the ASF announced that it would have a new personnel structure, starting in October, and that the number of employees in executive positions would decrease from 161 to 104. Later, the ASF announced that the World Bank would provide it with technical assistance for transforming its institutional and organizational structure. This thing apparently involves a new personnel structure, which would be implemented starting in 2015.
Furthermore, at the ASF the salaries are being reassessed according to the Hay Group method.
When asked what ongoing consulting contracts the ASF currently has and what amounts the Authority has to pay to third parties, its representatives told us that they would respond at the next press conference of the CEO of the ASF, which is expected to be held in the first week of September.
Didn't they have an answer on hand?
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