CCIFER and AHK Romania: Labour Code amendments are weakening Romania’s competitiveness

French Chamber of Commerce and Industry in Romania (CCIFER) and German-Romanian Chamber of Commerce and Industry (AHK Romania) express their public concern about the draft amendment to the Labour Code.

According to the members of the two Chambers of Commerce, the current framework, in force since 2011, was well received by the private sector and has led to an increase in employment and a fall in unemployment, positive economic growth, an increase in the minimum and average wage and a drop in labor disputes. The code represented a guarantee, be it minimal, of labor market stability and, consequently, of the actual competitiveness of the Romanian economy.

“The draft amendment to the Labour Code, currently in the legislative procedure in the Chamber of Deputies, drastically reduces the flexibility of working conditions, leading to decreasing competitiveness of the companies and Romania.
From our point of view, if they are adopted, they not only that will not bring benefits to Romania’s economy, but will jeopardize it at the risk of closing some companies, disclaiming planned investments and, as a result, that of canceling a significant number of jobs and increasing unemployment,” CCIFER and AHK Romania say in joint press release.

In their opinion, returning to a legislative framework more rigid than in 2011 is a measure deeply unsuited to current realities of the economy and labor market. An example of this is the proposal to reintroduce collective labor agreement at national level.

“We want a chance at real dialogue on the Labour Code,” foreign investors say.

CCIFER and AHK Romania currently brings together more than 1,000 French, German and Romanian companies, with around 350,000 employees. Over 25 percent of Romania’s commercial exchanges are made with Germany and France, the release points out.

collective labor agreementcommercial exchangesdraft amendmentFrench Chamber of Commerce and Industry in Romania (CCIFER)German-Romanian Chamber of Commerce and Industry (AHK Romania)INVESTMENTSlabour codelegislative frameworkRomania’s competitivenessunemployment
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