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Government proposes to liberalize labor remuneration in real economy sector …

The Government has approved amendments to the legislation, which amendments envisage the labor remuneration liberalization in the real economy sector.

Minister of Economy and Trade Igor Dodon, who presented a draft Resolution, remarked that economic entities-employers will receive the right to chose between a tariff and a non-tariff labor remuneration systems and a possibility to combine these two systems.

The application of a non-tariff or a mixed labor remuneration system must be confirmed by enterprises’ internal statute on the basis of a collective agreement.

“The idea is to aim the labor remuneration at the final results of enterprises’ industrial financial activities, to give labor remuneration independence to employers. The tariff system, which automatically envisages the increase for all the labor remuneration categories, if the basic tariff is increased, binds employers and does not allow them to stimulate initiative people. Employers are in such conditions that they are forced to pay equally almost to all the employees, that is why, they are not interested in increasing the labor remuneration fund. They use very often the envelope practice of labor remuneration (when a salary is offered cash in envelopes)”, Dodon said.

According to the document, if the non-tariff labor remuneration system is used, it is necessary to observe the guaranteed labor remuneration size. It is necessary to reconsider it yearly, depending on the consumer price index and productivity growth standard, which must consist of the relation between the average VAT and the average number of employees.

Premier Vasile Tarlev expressed hope that before this document is committed to the Parliament, it will be possible to agree it with the social partners – trade unions and patronage - in this case the labor remuneration will take place.

The Premier remarked that the tariff labor remuneration system will continue to be used in budget organizations and institutions.  // Infotag



Publication date: 22 February 2008   

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