The intention of the PSD government to increase the minimum wage by 38% as of next year (from RON 1,450 per month to RON 2,000 per month) is seen differently by the economic players: those who operate in lohn with low profitmargins , threaten to close down the factories in the event of this increase; others say the measure is beneficial if it stimulates the consumption of Romanian products.
“If the minimum wage will increase as announced, we will close down the factory, because we cannot meet these costs. We have 22 years on the market, we have 600 employees now, and over the entire platform here work over 1,100 employees who will become unemployed if the minimum gross wage increases to RON 2,000,” said Luiza Iacob, shareholder and director of the Pancarprod Vaslui clothing manufacturer, the county’s largest textile industry employer, which exports the products to France.
She added that the increase of minimum wage from RON 1,250 to RON 1,450 per month in February this year was hard to sustain. In addition, foreign client companies will not accept paying higher prices and will look for other markets, such as Morocco, in case of cost increases at Romanian suppliers.