The program retains many of the previous administration’s plans for the labor market, including the efficient absorption of European funds for human resources, increasing the employment rate to 65% by 2013, encouraging employees to attend further training and combating undeclared work by increasing controls.
The program also includes the development of a national job creation plan, with the involvement of social partners, restructuring professional training centers in a context of competition and creating partnerships with institutions that monitor the labor market.
The Government promises to organize the wage system in the public sector in tiers, “based on fairness and coherence,” restructure and revitalize social dialog by implementing it on a national scale and improve employment counseling.
The program also provides measures to encourage natality by promoting the employment of parents with children in care. Employers who hire women with children younger than six would receive subsidies, while parents would be allowed to take part-time work during maternity/ paternity leave (with a corresponding reduction in child-raising benefits).
“Earlier government decisions have sought to save jobs and stimulate the reintegration of unemployed people, through exemptions from the payment of social security contributions and subsidies for employers who hire people without jobs. The employment rate was 63% in 2011. The new Labor Code, in effect since May 2011, has made work relations significantly more flexible and better adapted to the labor market dynamics. Performance is the main criterion in work contracts and relations. Undeclared labor is more severely punished, in accordance with European directives. As a result of the Code’s adoption, in February 2012 there were 5,323,528 active work contracts, 156,171 more than in August 2011. Of these, 92.5% were for an indefinite period,” says the program.
The bill on unemployment insurance and employment stimulation is pending approval, while the bill on adult professional training is being developed. The Government has adopted the new Law on Social Dialog through a confidence vote in Parliament, reforming the organization of labor unions, employer organizations and the Social and Economic Council, eliminating national work contracts and keeping only industry and unit contracts, and adapting rules on collective work contracts and conflict resolution to Romania’s current needs.