Romanian Daily

140,000 jobs in rural areas through PNAO programme

IulianBulandra — 2006-07-27T09:05:00+00:00

National Employment Action Plan adopted by the Government yesterday, focuses the work of the relevant government organisations on rural employment.

The National Employment Action Plan - PNAO 2006 – adopted by the Government yesterday, focuses the work of the relevant government organisations on rural employment and Rroma employment inclusion. As far as rural areas are concerned, the National Employment Agency (ANOFM) will start implementing its 2006 Employment Programme for the employment of approximately 140,000 people, and the Professional Training Programme to train 15,000 people from rural areas. PNAO 2006 also includes a Travelling Mission to the Rural Areas for the information of the public of facilities provided for in Law 76 (2002). ANOFM will also focus on improving its institutional capacities at a local level.

For the development of agriculture in Romania by improving the quality of HR, PNAO 2006 includes an integrated approach based on inter-institutional cooperation and commitment of local stakeholders. The emphasis falls on the preparation of rural residents for the use of EU funds and programmes that will become accessible after the country’s accession to the EU. The Ministry of Agriculture, Forestry and Rural Development will conduct campaign supporting farmers in establishing sectoral organisations, information campaigns regarding the structural funds, and campaigns for the training of the staff in charge of implementing rural development programmes.

The Ministry of Education and Research is responsible for the improvement of the educational infrastructure and human resources available in rural areas. PNAO is very much concerned with the training of rural teaching staff, as well.

The development of rural tourism and employment in rural tourism form together another objective of PNAO 2006.

Another PNAO aim is the improvement of the access to jobs for the Rroma population. ANOFM will organise for that purpose a Travelling mission for the Employment of Rroma, involving all the local authorities responsible in that area.

The ANOFM 2006 Employment Programme also stipulates the employment of 10,000 Rroma ethnics and the signing of a cooperation agreement by the partners in the sector of tourism, ANOFM and the National Agency for Rroma (ANR), for their cooperation regarding opportunities for the training and employment of the Rroma.

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Investors pay to keep blue-collar workers in the country

IulianBulandra — 2006-07-27T07:11:00+00:00

Foreign investors are increasingly worried they will not be able to find the necessary personnel for the projects they want to develop in Romania, said Ana-Maria Cristina, the president of the Romanian Foreign Investment Agency (ARIS).
"One of the major concerns of foreign investors is the presence of a blue-collar labor force, as most Romanians look for better paying jobs abroad," Cristina said.

This problem has surfaced lately in talks between ARIS representatives and foreign investors looking to set up projects in Romania. "This is a new concern for us because until now foreign investors have not been very interested in this aspect. They do not ask what the average wage is, but rather what is the amount they need to pay an employee to keep him from leaving to work abroad," Cristina added. The ARIS representative also mentioned that investors are very well informed as to the Romanian labor market. "When we offer them a location in the eastern part of the country they are concerned a great deal about not finding qualified personnel, as in this region work migration is a widespread phenomenon," Cristina said.

However, the official believes the labor force is not an issue for the Romanian market. "Large projects, such as Microsoft, for example, may benefit from partnerships with universities and high schools, ensuring the training and education of future graduates, according to the specific requirements of each project," the ARIS official said. In the case of Microsoft, the Romanian state agreed to train 600 English, French and German speaking IT specialists that will work at the technical support center the U.S.-based company will open in Bucharest. Cristina believes the Romanian labor force has a competitive advantage over the other countries in the region. "The average wage in Romania is about three times smaller than that in Hungary and the Czech Republic and four times smaller than in Croatia," Cristina said.

In addition to the labor force, foreign investors looking to expand to Romania are interested in the location, which should have proper utilities at competitive prices. Investors also look into the way local authorities become involved in the process of issuing authorizations. "Most of the time investors complain about the amount of time it takes to obtain construction authorizations and ask for ARIS support to speed up this process," Cristina said. Furthermore, foreign companies are interested in the financial support programs for ongoing investments, from European funds or budgetary allocations, as well as potential providers of raw materials or subassemblies on the local market.

FIC wants to see changes in Labor Code

In its 2006 whitebook, The Foreign Investors Council comments the provisions of the Romanian Labor Code. The main problems signaled by foreign investors that have not yet been addressed by Romanian authorities refer to dismissal of incompetent employees, non-competition clauses, collective bargaining and mandatory training. First, FIC believes the basic principle for dismissal should be changed, from one relating to professional qualifications to one focusing more on performance.
Second, the Labor Code requires employers to pay a salary premium to employees that agree to a non-competition clause covering the employment period. FIC suggests that compensation to an employee for agreeing to a post-employment non-competition clause should be left to the parties to negotiate. Under the Labor Code, annual negotiations between employers and trade unions are mandatory and enforced with sanctions against an employer that does not enter into negotiations. FIC wants to see this requirement eliminated and the decision to meet to be left to the initiative of either of the parties. Another problem mentioned by the FIC is that employers must provide training for all employees on an annual basis. FIC says that there should be no mandatory training requirement and that employers should be allowed to train their employees on an "as needed" basis.

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Lottery’s salary fund management up by16.9 pc

IulianBulandra — 2006-07-26T09:05:00+00:00

The salary fund of the manager of the Romanian Lottery was increased this year with 16.9 per cent, compared to the last year, from RON 118,000 to RON 138,000, while the growth of the revenues of the company is estimated at only 0.2 per cent vs. 2005.

The salary fund of the Lottery manager, which includes all the bonuses, grows by 16 per cent, from RON 25,000 to RON 29,000, while the annual bonus of RON 51,000 is 21.4 per cent bigger than the past year, according to the 2006 income and expenditure budget of the company approved by the Government.

The Romanian Lottery has scheduled for this year a volume of protocol expenditures three times bigger than in 2005, representing a growth of around EUR 112 thousand, through the 2006 income and expenditure budget recently approved by the Government. The Lottery will increase three times also its advertising and publicity expenditures, from RON two M to RON 6.5 M, while the amounts allotted for sponsorships will be increased almost five times, from RON 457,00 to RON 2.1 M.

The income and expenditure budget of the Romanian Lottery includes also RON 400,000 representing expenditures for the enforcement of the strategy for the privatisation of the company.

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Hunting season for HR managers is in full swing

IulianBulandra — 2006-07-25T06:23:00+00:00

Human resources managers are more hunted than ever. Currently, several dozen companies in Romania have lost their human resources managers, and some of the highly sought after managers turned down offers to the tune of 8-9,000 euros.

One of them is Stelian Marian (32), who has just left his position as head of human resources and organisational management with OTP Bank, in order to focus on his own business - consultancy firm Synergon Consulting. In the two years he spent with OTP Bank, the former manager turned down nine job offers, some of them including salaries of 7,000 to 9,000 euros.

Cristian Popescu, the new HR vice-president of outsourcing company Genpact, a spin-off of General Electric, had to choose from four very good offers when he left his human resources manager position with Interbrew. A year before, he says he had received seven or eight offers he describes as "big". "The choice was very difficult to make," Popescu recalls. "It feels good to get offers but not all of them at the same time and very attractive."

Four other human resources managers from Vodafone have recently left, going with the flow on the market. The first of them was Daniel Badarau, who left to go to RomTelecom, where he got a better position. The second was Simona Popovici, who left an organisational development position to become the human resources manager for the Romanian arm of Coca-Cola Hellenic Bottling Company. Next was Costica Rosoiu, who was Vodafone's employment relations manager. He resigned and says he will be opening his own consultancy firm. Yet the most recent and most resounding departure is that of the human resources and administration vice-president of Vodafone, Valeria Mihaiescu who, in turn, decided to go into the consultancy business, side by side with one of the best-known head hunters, George Butunoiu.

Other human resources managers have changed employers for various reasons lately. Mihaela Gheorghe left Raiffeisen Bank this month and went to UPC. Carmen Pandelescu, a former human resources manager with Euroline, now has a similar position with Altex. Gabriela Balanescu left IBM for Prima TV. Adina Bigas has recently become Microsoft's human resources manager, after having filled a similar position with Tornado Sistems. Gabriela Micu and Izavel Chivu left CCHBC to join Smithfield, and Domo. The pharmaceutical industry in turn sought its own specialists during this period: Mediplus got Brandusa Fecioru on board from Banca Comerciala Romana as human resources manager. Ileana Vitelaru was taken by Astra Zeneca from Ursus. Adrian Lupulescu is no longer Softwin's human resources manager, having just been recruited by RomTelecom.

"There's a shortage of HR specialists on the market so that there's a lot of overbidding, especially when it comes to salaries," head hunter George Butunoiu explains. At the same time, the growing demand for human resources consultancy is turning more and more specialists from employees into advisors.

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Romanian Lottery budgets 31m-euro profit

IulianBulandra — 2006-07-24T05:52:00+00:00

Compania Nationala Loteria Romana (The National Romanian Lottery) budgeted a gross profit worth 31 million euros (almost 106 million RON) this year, 9% more in euros against the gross profit in 2005, according to the spending and revenue budget published in the Official Gazette. For 2006, the Romanian Lottery estimates revenues worth 201.8 million euros (723 million RON), just 0.2% more than last year. In 2005, the Lottery saw revenues worth 199.5 million euros (724.8 million RON). The company, however, intends to reduce its expenditures by almost one percentage point, from 172.1 million euros (617 million RON) to 171 million euros (613 million RON).

For this year, the company budgeted investments 3.4 times as big as last year, reaching 19.8 million euros (71 million RON). Last year the Romanian Lottery made investments worth 5.7 million euros (20.6 million RON). The Romanian Lottery also intends to increase the number of its employees from 3414 to 3421.

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Romanians' migration to advance only 4-5 percent after EU accession

IulianBulandra — 2006-07-21T07:24:00+00:00

Romanians' migration will advance only 4-5 percent after Romania's EU accession in January 2007, while the Romanian labour market will become attractive even for the experts who left for the Western world and intend to return home, said Daniela Andreescu, State Secretary with the Ministry of Labour, Social Solidarity and Family, head of Department for Labour Abroad in an interview to weekly Capital.

Most Romanians who have obtained a work permit went to EU countries, half of contracts being signed as part of bilateral agreements on labour exchange. The Office for Labour Migration, says Andreescu, expects an increase in the number of immigrants from Asia, the Near and the Middle East after Romania's EU accession, . Andreescu said that we should not expect a massive labour outflow as of 2007. She said that migration dropped 23 percent in 2005.

"People began to be aware of the risks of working abroad, despite the higher revenues," she said. Less skilled people will continue to leave for short periods, while qualified persons will be likely to remain. Most foreigners coming to work to Romania come from Turkey, China, India, Peru and Arab countries, many of them lacking education, said Andreescu. The employers in constructions will not be able to bring staff from non-EU countries if labour force from Romania and the EU is available. Andreescu said that real estate, hospitality and agriculture are not properly capitalised on in Romania, and foreigners are expected to develop business in these sectors in Romania after the EU accession.

"There will be foreign investors in services, tourism, banks, insurances, who target another level of quality and performance. Many small companies went bankrupt in the recently EU joined states, failing to face the new competition," said the official. Some 42,000 contracts for labour abroad have been concluded over the first quarter of the year, mostly for Germany and Spain.

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Romanian city to benefit from EBRD loan

IulianBulandra — 2006-07-21T05:11:00+00:00

€15 million to improve streets and transport in City of Sibiu

The City of Sibiu, in central Romania, will have improved transport services with the help of a €10 million EBRD loan to the city and a separate €5 million loan to S.C. Tursib, the city’s wholly-owned public transport company.

The loan to the city will help finance a street rehabilitation programme across three suburban areas comprising around 36 streets. The Bank will syndicate part of the loan to Anglo-Romanian Bank Limited, the London-based subsidiary of Banca Comerciala Romana. The €5 million to Tursib will help buy 30 new buses, as well as equipment to maintain these buses.

Thomas Maier, EBRD Director for Municipal and Environmental Infrastructure, said the City of Sibiu has a focused strategy to improve its streets, urban transport, and other infrastructure, and the EBRD is supporting that strategy, which will ultimately benefit residents, tourists and businesses.

Last year, the Bank helped the city improve its urban transport through a €15 million loan to finance rehabilitation of the Railway Exchange Square, and provided co-financing to a European Union ISPA funded project that supported a water and waste-water improvement programme for Sibiu’s water company.

Klaus Werner Johannis, Mayor of Sibiu, said the EBRD’s loan is supporting our initiative to improve the City of Sibiu. The loan is the latest in a partnership between the Bank and Sibiu, and in this instance the EBRD is helping to improve street safety.

Adrian Popa, General Director of Tursib, said the Bank’s loan is crucial to helping us update our bus fleet. With passenger levels averaging around 60-65,000 people a day, it is important to cater for their services in the best way possible, and the Bank’s loan is helping to do that. The new fleet will consist of 22 large buses, and eight medium-sized buses which will be used in the historic part of the city.

The EBRD is one of the largest investors in Romania, having committed more than €3.1 billion in around 112 projects. In the Municipal and Environmental sector alone, the Bank has committed nearly €400 million providing financing for over €1.2 billion in investment in Romania.

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NGOS To Help Families And Communities With Funds From The U.S. Government

IulianBulandra — 2006-07-20T07:14:00+00:00

According to a press release sent by US Embassy in Bucharest, families with aging parents, Roma schoolchildren, businesspeople from Ardeal and refugees – with support from the U.S. Government, civil society organizations work to assist these groups and many others throughout Romania. Today, 26 such NGOs were announced as the recipients of a new series of grants that will help them sharpen their advocacy skills so they can expand their work protecting the interests of Romania’s citizens.

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World Bank approves 106 million dollar loan for Romanian cities

IulianBulandra — 2006-07-17T06:56:00+00:00

The World Bank (WB) has approved a 106 million euros credit to help local governments in Romania develop their water infrastructure, the bank said in a statement Friday. The funds will assist Romanian counties and cities by expanding the water supply and sewage pipes to new areas and rehabilitate existing infrastructure. The supported projects are part of the efforts by Romania to meet EU environment standards and improve quality of life for its citizens.

"Access to quality water and wastewater services is certainly one of the most basic indicators for this improved quality of life," said Anand Seth, the World Bank's country director for Romania. The WB official said that the Romanian government has the task of assuring not only Romania's EU accession but also bringing higher standards of living, which exist in EU, in the day-to-day life of Romanians. In addition, the project will help local governments enhance the absorption of EU funds made available for these type of services and will improve the quality of service delivered to their citizens. The bank added that the total cost of bringing water and wastewater services up to EU standards is estimated to be around 15 billion euros by the end of 2018. The World Bank estimates that approximately five million persons will benefit from this project. Within the project, the Bucharest municipality will expand the investments planned through the PHARE project regarding the sewage system and the reconstruction of roads. The credit has a 17-year reimbursement period and a five-year grace period. The World Bank has granted Romania, since 1991, credits amounting to five billion dollars.

The last credit, amounting to 47.2 million euros, was granted for the financing of a social integration project. The project targets improving living standards and social integration for some of the disadvantaged citizens including the Roma minority, children in orphanages, the disabled as well as the victims of family violence.

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Over one million Romanians work abroad

IulianBulandra — 2006-07-14T09:26:00+00:00

At present it is estimated that over one million Romanian nationals work outside Romania.

The largest part work illegally in Spain or Italy. But there are many Romanian workers who work abroad legally. Most of the times, in order to get a job abroad, Romanian nationals have a lot of trouble fighting the bureaucracy. Long queues, sleepless nights on the pavement in front of the Office for Workforce Migration are the best examples to demonstrate how difficult it is to legally get a job in agriculture in Spain. According to the Ministry of Work, there are twice as many legal working contracts in Germany than in Spain. Workers in the Moldavian area have been dissatisfied with the fact they have to come to Bucharest – for their medical check up and go to Sibiu – where the German Consulate issues visas for the Moldavian counties.

The Minister of Work Gheorghe Barbu says that Romanian workers don’t have to come to Bucharest for their medical check up as there are medical centres close to the German consulates. On the other hand, minister Barbu added that visa issuing was divided between the three German consulates – Bucharest, Timisoara and Sibiu by the German state as well as the way the counties were allocated. The Romanian nationals wishing to work in Germany can do it either as employees of Romanian companies obtaining contracts in Germany – mainly in construction – or by obtaining individual contracts from German employers, mainly in services, restauration or agriculture.

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