At the same time, 20,000 employees of another state-run company that got private managers, Posta Romania (postal service company) are demanding that management resign threatening to go on hunger strike. A third state-owned company, national airline Tarom, saw its board of directors changed after six months because their plan ‘was not good enough’. None of these companies has published last year’s financial reports.
This is the state of confusion the three state-owned companies in key sectors of the economy project after the “Private sector CEO for state-owned companies” program was implemented in order to improve efficiency of the business and ensure profitable operation. So far, the only results have been the protests of disgruntled employees and constant changes in the management structure by appointing people not based on their experience with the sector of the company, as stipulated by the law, but by political connections.
“It’s obvious that this private management was not a solution for the troubled state-owned companies. In some cases it was just a way of putting politically connected people at the helm of state-owned companies,” said economic analyst Aurelian Dochia.
“The more changes and failures at these privately-managed state-owned companies, the less appetite on the part of capable managers to go to work for a state-run company.”
The country’s largest freight rail carrier, CFR Marfa, is now without a general manager again, at a time when it is preparing for restructuring to become profitable.
Dan Valentin Belcea, appointed to CFR Marfa a month ago after the death of the previous private sector manager, resigned.
“He tendered his resignation by e-mail, I was surprised, it was not because of professional reasons, he said it was for personal reasons,” George Buruiana, railroad affairs advisor of Transport Minister Dan Sova, told ZF.
On a highly competitive market like the freight rail transport is, where private companies like GFR, Transferoviar Grup and others operate and make a profit, any problem at the top created by a management change gives rivals a competitive edge.
CFR Marfa is not the only company in disarray, state-run postal operator Posta Romana, too, is, as 20,000 of its employees protested on Tuesday demanding that management resign.
“If they keep going with the lack of dialog like they are doing now – and I’m talking both parties here, management and trade unions, they will drive it bankrupt (Posta Romana that is),” Prime Minister Victor Ponta was quoted as saying by Mediafax.
The trade union members at this company demand that management resign, as well as 20% wage raise, paid overtime, consumables, postal uniforms and bags. They also demand that people be hired for the vacant positions.
Posta Romana’s general manager is Ion Smeeianu, who earns a monthly salary of EUR5,000 plus EUR1,000 for participation to the company’s board of directors’ meetings, Posta Romana officials say. The union members, however, say that he actually makes as much as EUR11,000 per month, according to Mediafax.
“Subject to its limited resources, Posta included in its 2014 spending budget a plan for improving working conditions of its employees and the quality of services, with the purpose of improving efficiency of the company and increasing revenue. As of the second quarter of this year, procedures to buy IT equipment and postal gear (bags, uniforms etc.) have been started or are being prepared,” Posta Romana officials said.
Another company to have seen a row of changes after a private sector manager was appointed to run it is regular airline Tarom. The board of directors of the company has recently had four out of six members replaced, the third change it has been through. Tarom accumulated EUR250 million losses in 2008-2012 and lost its market leader position.
Dante Stein, the chairman of the second board of directors and former advisor to Premier Ponta, and Razvan Filipescu, chairman of the National Tourism Authority are the two remaining members in the new board.
The four new members are Iulian Matache (42, a law school graduate), former state secretary with the Transport Ministry and former head of the investment department with Vrancea County Council, Radu Mihai Fleanta, Tarom pilot (according to LinkedIn.com), Gabriel Dumitrascu, head of the privatization division with the Energy Department, Toma Campeanu, state secretary with Communications Ministry and Dan Valeriu Andrei, former Carpatair manager.
(English version by Loredana Fratila-Cristescu)