Laurentiu Andronic Expert on social dialogue and restructuring EUROSOFIN Project, Kick-off Conference, Luxemburg January 2014

 Dramatic change of the social legislation (new Labor Code, new Social Dialogue law), imposed top-down by the President and former Government in May 2011, in close relation with the Foreign Investors Council.  An impact study published by ILO in January 2013 shows that at company level, the number of collective agreements negotiated and executed in 2011 and 2012 dropped to almost a half, compared with 2009 and  Major problems of the finance sector: ◦ Restructuring (7600 dismissals over the crisis, over 5000 dismissals in 2013) ◦ no official recognition yet of qualifications for finance and insurance workers EUROSOFIN Project, Kick-off Conference, Luxemburg January 2014

ILO Recommendation 166 on the termination of employment  In the situation that an enterprise fires from reasons of restraint of activity, the period to rehire decreases from 9 to 1,5 months  A profound violation of the rights of workers is a new provision in the Labor Code, namely that the selection for dismissal is made on the basis of accomplishing the criteria of performance, an exclusive attribute of the employer. Provisions concerning the flexicurity of labor with decreasing of security  The fixt term employment contracts are extended from 2 to 3 years  The trial period for employment is extended from 5 to 90 days for unqualified workers, from 30 to 90 days for executive positions and from 90 to 120 days for management positions EUROSOFIN Project, Kick-off Conference, Luxemburg January 2014

Before May 2011  five days time off a month  The days not used one month could be used next months  payed by the employer  the total number of representatives with this right and the cumulative total amount of time off are specified in collective agreements  The employer should also provide space and acces to office facilities for the union to carry out its activities After May 2011  number of days time off unspecified and to be negociated  The days not used one month cannot be used next months  No obligation for the employer to pay the time off  The employer is not obliged to provide facilities but the unions can negociate under collective agreement on it  The provisions are similar for employees representatives

 Very young federation, founded in 2002  The only one TU federation in the sector  13 affiliated TUs, 350 shop stewards,16500 members  Representative for the banking and insurance sector with over15% membership  Operates with full time President and Vice President  The Presidents of the 13 affiliates sit on the Federation executive board  Affiliation: ◦ National Trade Union Confederation “Cartel ALFA” ◦ UNI Global Union, UNI Europa EUROSOFIN Project, Kick-off Conference, Luxemburg January 2014

NR. CR T. Trade Unions' nameEmployeesTU membersRepresentatives 1Sindicatul Angajatilor din Allianz Tiriac Sindicatul ASIROM (Vienna Insurance Group) R 3Sindicatul BANC POST R 4Sindicatul IMPACT – BRD -GSG R 5Sindicatul CLAIMEXPERT (Vienna Insurance Group) R 6Sindicatul GROUPAMA R 7Sindicatul OMNIASIG (Vienna Insurance Group) R 8Sindicatul RAIFFEISEN BANK R 9Sindicatul ROMEXTERRA (NEXTE BANK) SIAAR (ERSTE Bank – Services for Infrastructure) Erste Bank Independend Trade Union Sindicatul UNICREDIT - Romania Sindicatul UPA -Romania R TOTAL EUROSOFIN Project, Kick-off Conference, Luxemburg January 2014

 Unions can be formed with 15 employees but collective bargaining requires 50%+1 majority in enterprise  Social dialogue legislation attempts to encourage sector against national bargaining but not successfully so far  Collective bargaining in the sector takes place only at enterprise (company) level. No sector collective bargaining because no employers association exists  The employers only coordinate their actions setting up NGOs associations: ◦ ARB – Romanian Association of Banks ◦ UNSAR – National Association of Romanian Insurance Companies ◦ UNSICAR - National Association of Romanian Brokers Companies  The only form of sectoral social dialogue is related to Vocational Training. This field is regulated by low which encourage every sector to set up a Vocational Training Committee as a Public body.  The Finance VT Committee developed 20 new occupational standards and trained over 3500 employees in ITC. EUROSOFIN Project, Kick-off Conference, Luxemburg January 2014

Information and consultation, is a general obligation on the employer to consult on decisions “likely to affect substantially employees rights and interests” Maters for consultation:  holiday arrangements, health and safety issues, an annual training plan and internal company rules  redundancies where has a right to make proposals for avoiding dismissals or cutting their number  The employer must respond to these proposals, giving reasons for the redundancies within 10 days, as well as consulting the unions on a “social plan” to reduce their impact  In the case of business transfers, both the company transferring the business and the one receiving it should consult the union  introduction of flexible working arrangements  use of any social fund the company may have  about the recent and probable future development of the business, the current situation and likely changes in employment  issues likely to lead to substantial changes to work organisation or contractual relations  The arrangements for informing and consulting employees are to be established by collective agreement EUROSOFIN Project, Kick-off Conference, Luxemburg January 2014

 Main forms of restructuring: internal reorganization, outsourcing, taking over, mergers  Silent restructuring  avoiding collective dismissal regulations  no real social plan, mainly by severance payments  Few positive exceptions were the TU are involved in the process of restructuring: Vienna insurance, Unicredit back office EUROSOFIN Project, Kick-off Conference, Luxemburg January 2014

 The EWC Directives are completely transposed into the Romanian legislation by the low 215/2005 (second revision) published on OM No 885/December  According to the Law 467/2006 on the General framework for information and consultation of the employees, employees representatives should be the TU representatives. In practice they are nominated by the Executive board of the TU  If no TU exists, the employees representatives shall be ellected by all the employees. The legislation does not stipulate how many should be elected, stating only that the number should be mutually agreed with the employer, in relation to the number of employees. In this case the EWC reps. shall be nominated by the employees commettee.  Companies were Romanian finance employees are represented: BRD GSG, Erste, Vienna Insurance, Allianz, Unicredit EUROSOFIN Project, Kick-off Conference, Luxemburg January 2014