5 out of 10 employers eye lay-offs

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Almost 5 out of 10 employers would proceed to lay-offs, according to a survey conducted by the National Council for Small and Medium Sized Companies (CNIPMMR). The managers say they cannot pay the minimum wages increased since January 1, whereas the managers of hotels and restaurants contemplate increasing the tariffs.

CNIPMMR President Florin Jianu says the employers cannot go further because they don’t have where to transfer the higher costs. If they increase the price by 5%, they might be out of the market and then close down the business, he said, according to TVR public television.

“As always, there’s also the labour black market. Many of these companies are family companies, with the husband and wife working together, or some relatives. At a certain moment, they could decide to give up the labour contracts,” fiscal adviser Adrian Benta says.

The hotels and restaurants managers say they cannot operate lay-offs due to the work force shortage. This industry lacks some 50,000 workers. However, the minimum wage increase would be borne by customers, due to higher tariffs.

6 out of 10 employers in the survey say they will increase the prices of goods and services due to higher labour costs.


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