Romanian Railway Companies Consider 12,000 Layoffs

Alina Toma Vereha

The Ministry of Transport and Infrastructure has asked the trade unions of the Romanian Railway Companies (CFR) to agree to approximately 12,000 layoffs. Sources from the Ministry said that the figure was just an assumption, a starting point for today"s talks with the unions. The same sources pointed out that the reorganization of the railway system must start with cost cuts and optimization measures.

The Ministry"s proposal is to cut up to 20% of the payroll through layoffs. Thus, CFR SA would cut 3,536 jobs, CFR Passengers - 2,545 jobs, CFR Freight - 5,949 jobs. The Railway Asset Management Company, the Railway Tourism Company, the Romanian Railway Authority and the National Railway Qualification & Training Centre would also cut jobs.

The respective companies would also cut salary increments for foreign languages, bonuses for the Railway Day and bonuses for Easter and Christmas. The second stage of the plan would include mergers between some of these companies, while the third stage would comprise an increase in the share capital of CFR SA by the value of the debts to the State and the electricity providers.

Upon the next rectification, the Ministry"s budget will be increased by 425 million RON to cover the losses of CFR Passengers, to pay 285 million RON worth of overdue invoices to CFR SA and to other suppliers. As far as CFR Freight is concerned, the Ministry will be authorized by the Government to increase the share capital through new shares worth a total of 600 million RON.