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Labour Law Reform in Romania: Review of selected issues. Corinne Vargha ( vargha@ilo.org ) Industrial and Employment Relations Department International Labour Office Geneva. Laws affected by the reform. Revised Law 53/2003 – Labour code
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Labour Law Reform in Romania: Review of selected issues Corinne Vargha (vargha@ilo.org) Industrial and Employment Relations Department International Labour Office Geneva
Laws affected by the reform Revised Law 53/2003 – Labour code Adopted through a special procedure (art 114 Const) engaging GVT responsability Under revision DRAFT LAW ON SOCIAL DIALOGUE • Law 54/2003 on unions • Law 356/2001 on employers • Law 109/1997 on the organisation & functionning of ESC • Law 130/1999 regarding collective labour contracts • Law 168/1999 regarding the settlement of labour disputes
Objective pursed • A more flexible labour market • Harmonization with EU Directives • Attracting FDI
“Non national” sources of policy advice • European Commission-IMF • ILO – at the union request • American Chamber of Commerce
Labour code reform: Key issues Contracts of employment • Fixedtermcontract: total durationextendedfrom 24 to 36 months but keptlimits on number of renewals • TAW:elimination of restrictions in line with Directive 2008/104/EC Dismissals • Criteria for determiningorder of redundancy(1. worker's performance; 2. social criteria) • Deletion of interdiction to hireduring a period of 9 monthsafter collective dismissals but priorityre-hiring of redundantworkersmaintained for a period of 45 days
Labour code reform: Key issues Work sharing schemes(partial excecution of contracts) • Provided for by LC subject to consultation with social partners Burden of proof • Principle of reversing the burden of proof in labour disputespreserved – key element of protection against discrimination & implementation of core ILS (C87-98-111)
Labour code reform: Key issues Collective labour relations Role of elected workers' representatives: extended to CB where there are no TU rep. ILO: Should not undermine position of TU rep Provisions regulating CB All articles regulating content/duration/coverage of CBA have been deleted & will be subject to a new law CBAs can only be signed for a period until Dec 2011
DRAFT LAW ON SOCIAL DIALOGUE: Key issues Conditions for being a representative TU for CB purposes • Now: 1/3 of workers • Tabled by GVT: • 50% + 1 workers/enterprise of 20 workers OR • 30% enterpriselevel + TU shouldbelong to MRS atbranchlevel OR • Electedworkers' representative ILO anticipatesthatcriteriamightbedifficult to reach --> for all intend and purpose, CB willtake place primarilywithworkers' rep & not TU rep
DRAFT LAW ON SOCIAL DIALOGUE: Key issues Coverage of Branch level CBAs • Now: Erga omnes effect • Tabled by GVT: Erga omnes effect ONLY IF over 50% of the workers are represented by the signatory unions
DRAFT LAW ON SOCIAL DIALOGUE: Key issues • Wage negociation in the public sector to take place within limits that are not subject to negociations • ILO: In compliance with C98-C154 (ratified by Romania) on the condition that: • unions are involved in the determination of the upper & lower limits on budgetary package available • Significant role is left to CB
Other European experiences • GREECE: • restriction on free CB of wages should be imposed only as an exceptional measure • Interruption of already negotiated CBAs is not in compliance with C98 • Facilitation of opt-outs clauses 2. SPAIN: facilitation of opt-out clauses and large LL reform 3. Slovakia, Czech Republic, Russia embarked on LL reform with somewhat similar agenda: request for consultation with the ILO