IAR - Ghimbav Allocates 23.66 Mln RON To Payroll

F.A.
Ziarul BURSA #English Section / 12 aprilie 2007

The trade unions in the Brasov-based IAR - Ghimbav (RASDAQ: IARV) have obtained a payroll of some 23.66 million RON for the year 2007. The sum will allow a 15-to-30% raise, according to union leader Suba Arpad, quoted by Rompres. He added that the raises are fully warranted, considering that the company had concluded last year with 4 million EUR in profit.

Unionists on Wednesday met with representatives of the State Assets Recovery Authority (AVAS) to discuss salary raises for 2007. "We have negotiated an annual payroll of some 23.66 million lei and we are pleased with the outcome of the negotiations. The actual raises will be between the 30% we asked for and the 15% that AVAS had offered initially," said Mr Suba. Some 900 IAR - Ghimbav employees on April 5th went on a two-hour strike asking for a 30% raise and for severance to those to be laid off upon privatization.

In their view, severance should be equal to 20 average net salaries company-wide for those under 35 years of age, 30 for those between 35 and 45 and 40 for those over 45. In response to the request for raise, the management offered 15% in three steps.

IAR - Ghimbav is controlled by the State with 65%, followed by the Labor Ministry with 7% and SIF Transilvania with 4%. The company has established a joint venture with Eurocopter, an EADS subsidiary, in which the French - German group holds 51%. The average net salary of an IAR - Ghimbav employee is 1200 RON/month.

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