Massive Layoffs Announced

In the general context of the international financial crisis, several Romanian companies focusing on exports have downsized their production either by temporary interruptions or by laying off some of the employees. Adina Croitoru, the spokesperson for the National Employment Agency (ANOFM), said the Agency had been notified of 17,000 layoffs planned until the end of 2008. This number includes seasonal jobs, such as those in the construction business, agriculture or tourism. Liviu Voinea, Executive Director of the Applied Economics Group (GEA), believes that what is currently happening with large companies and small- and medium-sized enterprises is the result of the decrease in demand for exports and the more difficult access to financing. The latest report of the National Bank of Romania (BNR) on the matter of financial stability indicates that service providers, retailers and real estate developers are the most affected by this situation, Voinea added. Cristian Parvan, Secretary General of the Association of Business People in Romania (AOAR), said that the Government had turned a deaf ear to the Association"s recommendations regarding support for small- and medium-sized enterprises during the crisis. He added that the only way to counter unemployment was to stimulate the business environment, which would consequently create more jobs.

--Almost 2,000 jobs on the line in Cluj

Fifteen companies registered in Cluj have notified the local subsidiary of ANOFM that they intend to lay off 1,962 workers, according to an announcement made by Cluj County Prefect Calin Platon quoted by NewsIn. The notifications came from Somes SA - Dej, Napolact SA, Vladeasa Huedin SA, Hidroconstructia SA, Pufarom Prodcom SRL, Blando, Transelectrica Com Fashion SRL, Simpatub SA, Sticla Turda SA, Toscano SRL, Transfond SA, Cosmoart, Cercom Ariesul Turda and Turism Ariesul Turda.

--3,000 workers on standby in Targoviste

Some 3,000 workers of the Mechel plant in Targoviste have been on standby since the beginning of the month and are being paid 75% of their regular salary. Union leader Mihai Toma said no layoffs were planned, but nearly all employees were on standby, being paid 75% of their regular salary. Also in Targoviste, Erdemir reported a production decrease by nearly 2,000 tons as a result of the global financial crisis.

--Exporters in Bistrita heavily affected

Several industrial companies in Bistrita County have also notified authorities that they need to lay off part of their staff in the near future. Companies focused on exports are the most affected, as foreign orders have been cancelled or put on hold, according to Valeria Tamasoi, Headof the Labour and Equal Opportunity Directorate in Bistrita Nasaud. She informed the Social Dialogue Commission of the Bistrita Nasaud Prefect"s Office that HR directors of several companies had announced either production cuts or layoffs. According to her, Rombat SA - Bistrita had halted production for three days following a similar decision by their leading customer, Dacia Renault. Moreover, Medis had already fired 20 and was preparing to lay off 80 more employees, while Ario had managed to pay only 70% of the salaries for October. The list continues with an 80% production cut at aluminium radiator manufacturer RAAL and the projected layoff of 100 employees from Comelf - Bistrita.

--Mass layoffs in Prahova

Three companies based in Prahova County announced earlier this month that they would turn to mass layoffs: mechanical plant Uzina Mecanica Plopeni, furniture factory Anteco and fabric factory Linea. Specifically, Uzina Mecanica Plopeni will fire all 700 employees, Linea - 180 employees out of 270 and Anteco will fire 78 employees.