Automobile Dacia, Kaufland announce the employee wages will not be affected as of 2018. Ford sets some conditions

Automobile Dacia announces in a press release that it will offer to its employees a compensatory amount of 20 percent so that the net salary not to decrease as of 1 January 2018, while moving social contributions from the employer’s obligation to that of the employee.

At the same time, German retailer Kaufland announces for Romania that it increases its monthly minimum gross income to RON 2,800 after announcing in a marketing action in November that it will take over the employer’s contributions in the employee’s gross salary as of 1 January, so that every Kaufland Romania employee will have a higher net wage, on average by 1.5 percent. The new revenue will include both meal vouchers, as well as Christmas and Easter gift vouchers and will be effective as of March  2018.

On the other hand, Ford’s officials, US car manufacturer with 4,200 employees in Craiova, want to increase their gross salary from 2018 only if they agree that the union and the company sign a two-year collective labor contract, instead of one year, as usual.

By December 20, 2017, all Ford employers must initiate a negotiation procedure with trade unions / employees’ representatives to take a decision on the effect of the “tax revolution” transferring social contributions from employer to employee.

For the employees to have in 2018 the same net salary as in 2017, the companies need to increase the gross wages between 17 and 22 percent, consultants say. Otherwise, the net employee earnings will decrease.

Recently, hundreds of unionists, members of the National Trade Union Bloc (BNS) protested in front of the Government building, against the decision to transfer social contributions from employer to employee. According to them, by transferring all social risks to the employee and destroying thus the system of collective negotiations, Romanian authorities condemn workforce in Romania to precariousness in labour relations.

”The fundamental rights of workers are threatened, as chances to fair labour, based on trust and mutual respect, continue to degrade,” protesters said.