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Businessmen Association says minimum wage increase as of November 1 is a populist, arbitrary decision

The Businessman Association in Romania (AOAR) says the wage increases in public administration, health and education, without meeting the performance criteria, have not led to an improvement of services for companies and citizens, a release on Monday reads.

“AOAR has drawn the attention that the decisions to increase wages without the review of the relevant legal framework, contradictory in many cases (frequent amendments or enforcement over unrealistic short terms) will not achieve their purpose of public interest. AOAR especially disapproves the lack of political will in regard to the computerization of public services, contrary to the statements and commitments, repeatedly claimed by all political decision-makers. The consequence of lack of computerization for public and local services is higher pressure for increasing the number of employees (over 15,000 new employees in the public sector, in 2017), based on the loading degree,” the document reads, quoted by hotnews.ro.

AOAR argues that the announcement of increasing the minimum wage, as of November 1, earlier than January 1, 2019, is a populist, arbitrary decision, which will affect the private sector, mainly the processing industry.

“The Association has learned, with regret that the governing programme regarding the improvement of the Government-business environment relationship remains only political statement, of electoral nature. All the decisions made by the successive governments after January 1, 2017, have put the companies to hard tests, affecting the confidence and the performance of the social-economic environment. The danger of ignoring, by the political decision-makers, of the fundamental requests from the business environment, have led to the significant cut of investments, to amplifying the tensions on the labour market and to the slowdown of economic growth,” the release reads.

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