NGO “AUR” –the National Association of Human Resources

REPORT ON THE ECONOMIC CRISIS IMPACT ON THE HEALTH AND SAFETY

WORKING CONDITIONS IN ROMANIA

by Christina Leucuta

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4. Health and safety working conditions in times of crisis (7 pages)

4.3. Romania

Impact of the global financial and economic crisis on Romania

The world economy has been ravaged by three years ofa crisis but “the international community must respond to the very real impact the crisis has had on working people” said IMF Managing Director Dominique Strauss Kahn at the ILO/IMF Conference on “The Challenges of Growth, Employment and Social Cohesion” held in Oslo on 13 September 2010. At the same event the ILO Director General Juan Somavia said “When growth is not fair, it becomes unsustainable”.

The global economic and financial crisis, which affects all economies of the world forced different actors to work together to ensure coherence and synergies between their specific roles in the process of restructuring and recovering from the crisis.

The enormous economic and social changes across Europe in recent years have had a considerable impact on the business environment of companies, particularly small and medium-sized enterprises (SMEs). In order to respond to these changes and to remain competitive, companies today must constantly adapt and learn to innovate. Traditionally, restructuring processes are generally considered to be mainly about job losses. However, in recent years-and largely as a result of the need to create more and better employment in the EU in line with the EU Strategy 2020 initiatives, mainly with the three flagships initiatives, “Industrial policy in the era of globalization”, “A New Jobs Agenda” and “New skills for new Jobs”, an increasing attention has been paid to new business creation following restructuring and to the importance of “socially responsible restructuring”.

The global economic crisis and its consequences mean the world faces the prospect of a prolonged increase in unemployment, deepening poverty and inequality. The ILO estimates that 34 million more people worldwide are unemployed now as a result of the crisis. Combating unemployment and striving to attain decent work for all must be a key priority as the global economy emerges from the downturn. Employment has usually only recovered several years after recovery.

Globalization, technological changes and the emergence of more flexible work patterns are challenges impacting on job security and working conditions and transforming the labour market. Romanian Government has the responsibility for employment and social policy. The EU’s role is to be a catalyst for change and modernization. On employment, EU asks Government, in partnership with employers and trade unions as well as civil society, to make work a real option for all, increase the quality and productivity of work and better anticipate and manage change.

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Romanian government adopteds legislation setting out minimum standards in employment law, working conditions, health and safety, non-discrimination and gender equality to ensure individuals throughout Romania enjoying a common level of protection. The Ministry of Labor, Family and Social Protection agreeds with the other ministries common objectives, supervise how they converge towards these objectives against commonly agreed indicators and benchmarks and foster the transfer of best practices. Government provideds additional financial support for employment and inclusion policies through for example the European Social Fund and other programs.

The institutionalized social dialogue in Romania has two main components: the tripartite social dialogue, which is regulated and occurs within the economic and Social Council (established in 1997) between sectoral committees and tripartite bodies; and the bipartite social dialogue, focused mainly on the process of negotiating and concluding collective labour contracts and solving collective labour conflicts. The sectoral committees work on issues such as health and safety at work, vocational training, skills, equal opportunities, mobility, corporate social responsibility, working conditions( the exposure to physical risks at work, work intensity, learning work organization, flexible working time, work satisfaction, etc) and sustainable development.

One of the most important last developments in the debate on social responsible restructuring policies has been the common understanding of flexicurity principles. There have been six priority areas identified in the debate and one of these areas is the working conditions. Social partners have developed trust and a shared understanding on large range of issues such as economic and labor market policy, corporate social responsibility, health and safety at work, social dialogue practices and others.

The crisis was not only deep and intense but lasted too long for Romania worsening economic situation. The salary is more important for Romanians than health and safety at work on a short term- said the European Agency for Health and Safety at Work in a recent study.

The annual inflation in the economy is variable starting with 4,84% in 2007, 7,85% in 2008, 5,59% in 2009 and estimations for 2010 are of 4,5%. The annual rate of inflation is reduced in the last ten years but the prices increased ( 430%) due to excises and the price of electricity.

First significant factor of influence for inflation in Romania is the labor market. The most important indicators of the evolution of labor market are the unemployment rate and the net income of the employees.

Two big risks are determined by the crisis: unemployment and the worsening of the working conditions. The unemployment rate of 7,4% in Romania is the highest in the EU. There is a need for some assistance programmes to help workers who have lost their jobs to find new jobs. This requires substantial effort from the National Agency for Employment in organizing periodical job fairs and in cooperating with the Ministry of

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Labor, Family and Social Protection to identify social and demographic developments. The minimum wage in Romania is of 153 euro for full-time employee in 2010. Key economic indicators, Romania, 2008-2010 (August)

Nr.Crt.

INDICATORS U.M. 20082008 2009 2009 20102010provisional dataprovisional data

20102010estimatedestimated

1 GROSS DOMESTIC PRODUCT (GDP)

% 7,3 -7,1 99,5 in % as against the

corresponding period of previous year(8 montjhs)

-6,8

2. Share of the main economic sectors in GDP (6 months):

AGRICULTURE % 6,7 6,3 6,4 -INDUSTRY % 22,9 23,7 25,5 -CONSTRUCTION % 10,6 9,8 9,1 -SERVICES % 48,9 50,7 51,5 -

3. INDUSTRIAL PRODUCTION – TOTAL (8 months)

% 102,6 94,5 105,5105,5 106,0106,0

  MINING AND QUARRYING

% 99,999,9 88,088,0 92,592,5 99,099,0

  MANUFACTURING % 103,1103,1 93,593,5 105,5105,5 105,5105,5ELECTRICITY, GAS, STEAM AND AIRCONDITIONING PRODUCTION ANDSUPPLY

% 100,4100,4 107,0107,0 110,4110,4 113,0113,0

4. AVERAGE NUMBER OF EMPLOYEES(8 months)

  TOTAL thousands persons

48144814 45954595 42234223 42004200

  INDUSTRY

MANUFACTURING

thousands personsthousan

dspersons

15251525

13191319

13711371

11161116

12131213

978978

12301230

10001000

6. LABOUR PRODUCTIVITY% 104,9104,9 112,7112,7 119,5 ( 8 months)119,5 ( 8 months) 115,0115,0

7. FOB EXPORTS ( 7 months) Euro mil. 33628 29116 20560 330008. CIF IMPORTS ( 7 months) Euro mil. 56337 38897 25923 420009. BALANCE (7 months) Euro mil. -22709 -9781 -5363 -900010. FOREIGN DIRECT

INVESTMENTS (6 months)Euro mil. 94969496 45564556 18381838 --

11 NUMBER OF UNEMPLOYED

thousands persons

403,4403,4 709,4709,4 675,8 645,0645,0

12 UNEMPLOYMENT RATE % 4,44,4 7,87,8 7,4 7,37,3Source: NIS-National Institute of Statistics (2008-2009) and National Commission of Prognosis(2010)

The domestic market is dominated 75% by imports and the consumption is oriented mainly towards cheap products excepted segments of clients which prefer brands.

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There are 2 millions Romanians workers abroad, definitively or temporary, the large majority of which are working in the European Union mainly in Italy, Spain, UK, France etc. The share of young people aged between 18-40 years is about 35% of the total population of the country and about 55% of the population which emigrated legally after 1991. Labor migration (emigration and immigration) is a complex phenomenon determined by many economic, social and demographic factors. The free movement of persons represents one of the fundamental liberties of the European citizens guaranteed by the Article 39 of the EC Treaty.

The EC representatives consider that one in two people has an unstable job, many work in dangerous conditions and 80% do not have suitable protection. It is necessary to increase the number of decent jobs with assurance of suitable protection, offer of equal opportunities and investment in the development of labor market. The workers’ remittances in 2007 represent 5,6% of GDP and in the first semester of 2010 around 2%. Immigration and the return of Romanian migrants could be a short and medium term solution for solving the labor crisis in Romania. The most affected sectors by the labor shortage are constructions, textiles and clothing, woodworking etc.

The cost per hour differs inside the EU, from 32.16 euro (Sweden) to 1,52 euro(Romania). The average cost per hour of labor in EU is 20.35 euro and in Romania it is 2.68. This cost is calculated taking into account the salaries of the employees with full norm in the industrial companies and services that have less than 10 employees.

In Romania the creation of new jobs is low (with an average of 1.5%) and the adaptability and mobility of the labor force needs strategic measures to reduce the gaps between demand and offer. In Romania there is a need for technical personnel and of well trained management.

Foreign investment played an increasing role as an inevitable component of the Romanian economy. The statistics of the National Bank of Romania show that in 2007 the FDI were around 7250 million euro, in 2008 around 9496 million euro, in 2009 around 4556 and in June 2010 around 1838 million euro. The exchange rate fluctuates dramatically in the short term, generating important losses for exporters.

In Romania the informal market due to the crisis represents 25% of GDP but the magnitude and rate of growth of this sector are difficult to establish. The development of the informal sector is not a temporary phenomenon, which would disappear in the foreseeable future but on the contrary it is likely to continue to expand and implies both employers and workers. The informal sector constitutes an employment refuge for workers who fall out from the formal sector in times of crisis and provides a “safety net” for poor households’ income. Most of the micro-enterprises in Romania from the informal sector operate on open land and locations not legally recognized for the purpose and with no right of ownership. Existing occupational safety and health (OSH) regulations do not cover these workers. The majority of informal sector workers live in poor areas, lack basic health and welfare services and social protection and work in an

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unhealthy and unsafe working environment. For many informal sector operators their home and workplace are one and the same place. The conditions under which most informal workers operate are precarious and unsafe. Passing to the unique taxation quota has not generated the foreseen effects because both employees and the state have lost money.

Promoting well being at work in Romania requires a change in policy paradigms based on the moving away from “only preventing risks” to proactive well being promotion and a real implementation of life long learning policies and active labor market policies. A key role plays the work organization: some work organizations are better that other for health and for learning.

The main legal requirements for employment relations are laid down in the Labour Code and special regulations on working time, breaks and holidays, job transfers and the structure and organization of salaries.

Social security and health insurance in Romania are compulsory, with the option of supplementary voluntary social and health insurance. Contributions for health and social insurance are based on the insurable earnings of employees.Employers are obliged to provide healthy and safe working conditions.The Law on the Promotion of Employment deals with the rights and obligations of jobseekers and employers who wish to use employment agencies to recruit staff.

Social rules are focused on non-discrimination, equal opportunities and gender equality. The Protection against Discrimination Act sets the fundamental standards on protecting the right to work. It prevents employers from discriminating when selecting employees; it provides for the mandatory provision of equal working conditions; equal payment for equal or equivalent work the provision of equal opportunities for training and career development;

The Law on the Integration of Disabled People obliges employers to provide and adapt working places for the needs of disabled people and provides for measures to stimulate employers who employ people with disabilities.

The Law on Healthy and safe labor conditions obliges employers to ensure healthy and safe working conditions. It also outlines general preventive principles and measures to promote the health and safety of the workforce. The minimum requirements for healthy and safe working conditions are laid down in several ordinances which transpose European directives on health and safety at work. Control to ensure that health and safety legislation is observed is managed by the Labor Inspection.

Labor protection is stipulated by the Law no.90/1996 which deals with the issues of: state social security provision in general sickness, accidents at work, occupational illness, maternity, unemployment, old age and death. In Romania, health insurance is provisioned for by the Health Insurance Law.

The Law on the Settlement of Collective Labor Disputes lays down methods for resolving collective disputes between employees and employers regarding working and

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insurance relations and standards of living. In case of disputes, both parties(employers and employees) should look for assistance through mediation and/or voluntary arbitration by trade unions and employers’ organisations.

There are also some administrative procedures concerning non-discrimination, equal opportunities and gender equality

The Government, represented by the Ministry of Labor, Family and Social Protection and the Ministry of Economy, Commerce and Business Environment, has reinforced efforts to provide a solid basis for discussion with social partners and to agree with the anti-crisis measures package, focusing on: -Implementation of the program to increase the competitiveness of industrial products: one of the main activities of this program is the implementation of OHSAS 18001-1999 (management system of health and security at work) and SA 8000 (social responsibility); It’s true that in this period of crisis the number of companies that ask for public funds for implementing the social and occupational standards decreased in comparison with other their priorities but the trends revealed in various occasions are positive.

Here below some pProjects financed by the Ministry of Economy, Commerce and Business Environment within the Program for increasing competitiveness of Industrial products (OHSAS 18001/1999 and SA 8000)

Year Number of projects financed

Value lei Average annual exchange rate 1 euro/lei

Valueeuro

2005 76 3.009.131 3.6234 830.4722006 84 5.137.435 3.5245 1.457.6352007 54 5.014.519 3.3373 1.502.5672008 43 2.991.273 3.6827 812.2502009 10 481.061 3.9010 123.3172010(1st

semester) 4 400.272 4.1275 96.976

Total 2005-2010(1st

semester)

271 4.823.217

Source: Ministry of Economy, Commerce and Business Environment

- Implementation of the program to improve competitiveness by promoting the decent work; this program has already succeeded in its aims because it has brought the social partners and the Government together to work on competitiveness. The focal point of this dialogue is the concept of decent work as a competitive factor.

-Elaboration of a national operational planning of employment and skills -Matching of education and training opportunities offered by various institutions to

the needs of companies and sectors -Offering future-oriented qualifications plans and reinforcing the active labour market

policies

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-Supporting competence development with a special focus on generic skills and competences

-Developing forecast and foresight tools on employment and skills needs -Creation of tools for efficient exchange of labour market information -Developing of National Life Long Learning strategies and direct job creation -Offering incentives to create jobs for SMEs/self-employed (stipulated by Law

no.76/2000) -Developing of national policy and incentives to promote geographical and

occupational mobility -Making the vocational training accessible to all, in particular to low-skilled

employees -Developing an adequate equality and anti-discrimination policies and programs as

well as measures focused on particularly vulnerable groups -Reinforcing of intra-governmental co-operation (Ministry of Economy, Commerce

and Business Environment, Ministry of Finance, Regional Development Agencies etc) and with other entities such as the National Research Institute for Labor and Social Protection; NGOs etc

-Promotion of social dialogue, collective bargaining and tripartite mechanisms for dealing with strategic and specific issues

-Coordination of the Sectoral Operational Program for Development of Human Resources (with structural funds) etc

This project contributes to the improving of experience in the field of health and safety at work among companies and countries in the period of crisis and recovery and could be an example of best practices at European level.

5. Examples of “Good practice” in times of crisis

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Working conditions elements; initiatives; combination of the above

Am inteles ca trebuie sa ne ghidam dupa urmatoarea structura:

Care a/au fost riscurl/riscurile depistat/e; Care au fost imbunatatirile reale/solutiile gasite; S ustenabilitatea in timp; B una consultare intre management si angajati. Conformitatea cu cerintele legale relevante, preferabil mai mult decat cerintele

minime; Posibilitatea multiplicarii la alte locuri de munca, de preferabil in alte IMM-uri

din alte state membre UE.

Pentru fiecare caz ar trebui sa dezvoltam putin fiecare punct mentionat mai sus.

5.9. Case 1 (3-4 pages) ELECTROPRECIZIA Group SA Sacele Brasov, founded in 1936 is one of the most important manufacturers of electric motors from Central and South Eastern Europe. In the same time the group is the most important Romania manufacturer of electrical and electronic equipment for the automotive industry.

Nowadays, the group includes seven independent companies, each of them having its own activities.

Having 1270 high skilled employees and thanks to its flexible technologies, the group is able to satisfy the exigencies of its clients and to assure the start and the development in optimal conditions of a large range of projects, products and services in co-operation with EU or from elsewhere partners.

Along the years ELECTROPRECIZIA Group SA was attested with the following certifications: ISO 9001:2008; ISO/TS 16949: 2000; ISO 14001:2004 and OHSAS 18001:2007; certified laboratories for the quality control of the raw materials and of the finished products.

ELECTROPRECIZIA Group SA is a private company with an employment capacity more than 1270 employed people.

The concept of the decent work is generally well applied in the companies of the group. The average salary in ELECTROPRECIZIA Group is 400 euro more than the average salary in the automotive and electro-technical industries. There is no difference between the income for men employed and women that represent 30% of the total employees. Percentage of participation of employees in job-related training over the last 12 months provided or subsided by the employer or by the state was of 20% in the training centers or in the University Transilvania Brasov which is a member in a cluster with

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ELECTROPRECIZIA Group SA together with other 17 members from industry, authorities and research.

Security of work is an important aspect of decent work because losing job is a serious event for most people. It’s true that the stability of job is not assured in Romania. This indicator of duration is focused on a specific relation between employer and employee and it is stipulated in the individual labor contract. The number of accidents at work in ELECTROPRECIZIA GROUP SA is around 10 per year but not mortal and with incapacity of work.The risks encountered in this group of companies by the experts are generated by physical risks (damaged temperature in the production units, toxicity, dust, noise, toxic substances, activities which suppose immobility or standing up for a long time). Some of these risks cause excessive physical tiredness.

The management demonstrated to the experts that the expose to these risks is temporary because the company is in restructuring further to the change of owners.

Explaining the reasons for change to the trade union was essential for Electroprecizia. The strategies used to promote this key factor for success need to be adapted to the challenges of the crisis. The employer has managed well change and its social consequences and develop in a correct way the employability. Maintaining and developing workers’ competences and qualifications in order to foster internal mobility and ensure the success of the business is essential.

A rising number of initiatives are being taken by the management together with the trade union in the field of improving the working conditions by endowment with new equipment and accessing structural funds for an innovative production process. The Group signed also an interesting agreement on vocational training with the training centre aiming to qualify and reconvert workers in restructuring process because it includes a special focus on competence development in change situations.

ELECTROPRECIZIA Group could be a model of reorganisation for other industrial companies from Romania in times of economic recovery.

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5.10. Case 2 (3-4 pages)

SC AEDIFICIA SA CARPATI is one of the main company in construction field in Romania with 2000 high skilled employees. The company became integrally private in the year 1993.

The Company boasts a 40-year expertise in the field of construction in Romania. Its impressive portofolio is reflected in various works at the Palace of Parliament, the “Cotroceni” Palace, the “Snagov” Palace, the Romanian Athenaeum, the Central University Library of Bucharest, the National Museum of Art of Romania, the Hunting Museum in Posada, the University in Bucharest, the “Theodor Aman” Museum, the “Ion Mincu” University of Architecture and Urbanism, the Casino of Sinaia, bank buildings (headquarters, banking centres, and subsidiaries), embassy buildings, various industrial buildings etc All these references stand proof for the expertise of the Company and the professionalism of its experts.

Other accomplishments of the Company include medals and awards as well as the Standard ISO 9001:2001; the Certificate of Historic Monument Restoration no.3/19/2003; OHSAS 18001: 2003.

As fields of activity the main important are focused on:-restoration of historic monuments according to the Certificate nr.3/19/2003 MCC updated on the 20th of November 2007-turnkey works in civil engineering and industrial building construction -interior design-both traditional and modern-restoration and consolidation-metal, aluminium an d stainless steel works

The company AEDIFICIA monitors safety on construction sites that is a particular challenge compared with workplaces as the sites and the conditions change constantly with well skilled personnel. The Labor Inspection and the company developed a method for evaluating the occupational safety level on construction sites leading to an improved safety on construction (protection from falling, use of protective equipment and risk-taking, electricity and lighting etc. The safety level in the company has reached 60%. In the past two years accident frequency has fallen by 25% and no mortal accidents. The seriousness of accidents and the number of days of absence were reduced.

AEDIFICA has two labs for controlling the health of workers (the exposure of workers to dust and hazardous substances, to noise, vibration, heavy manual work etc) and this is a priority of the management.

The company uses frequently mobile access equipment and mast climbers to avoid falling from the height and also this equipment is dismantled safely in accordance with the relevant legislation in Romania.

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All works are carried out based on a partnership between client and the company respecting the standards of health and safety in the benefit of both partners.

Planning in AEDIFICIA is crucial in achieving good standards of safety and health. Projects benefit from the increased likelihood that they are completed on time and within budget and quality requirements. The management involves the workers in a cooperative process.

No member of the team for construction may have access to the site without attending the compulsory safety course established by the Labor Protection specialists. The course takes four hours and includes a presentation of risk areas. Staff must pass a written examination focused on health and safety issues. The aim is to ensure that everyone is aware of the importance and significance of their contribution as individual workers to high health and safety standards on site.

An important part of the development of the management system is the internal consultation and communication with the different departments in the company including the Internal Audit Department. A large number of the measures identified to improve communication and employee involvement in health and safety concerned instruction and training needs. Skilled construction workers, team leaders and construction supervisors are provided with training to develop personal and occupational skills, including training in negotiating, communication skills etc.

The management believes that his policy of employee involvement is helping to keep the company economically viable in a highly competitive field as well as contributing to the motivation of staff and their job satisfaction.

The company is active in sharing the results of its achievements which also helps the company to promote a positive image and a good publicity.

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5.11. Case 3 (3-4 pages)

SOFIAMAN is a Romanian company based in Targu Neamt, in the Neamt County and was established in 1996. Currently, the company is one of the leading producers of sleepwear and underwear goods in Romania. In 2008, prior to the economic crisis, an economic survey concerning the national market of sleepwear goods revealed that the company owned almost 40% of market share. Nowadays, SOFIAMAN is one of the fewest producers of sleepwear in Romania and has maintained their market position through product innovation and diversity.

The company produces and sells mainly in the domestic market and has a range of products containing:

Sleepwear for men, women and children; Underwear for men, women and children; Sportswear for men, women and children; Home wear for men and women.

From 2006, SOFIAMAN has become the solely distributor in Romania for LISCA, an European leading company producing high quality lingerie for women. Furthermore, from 2007 SOFIAMAN also became the solely distributor in Romania for JOCKEY, an American based company producing high quality underwear and sleepwear for men and currently the worldwide leader on the market.

During the economic crisis, SOFIAMAN has downsized itstheir production capacity and the number of employees, holding now 130 employees. At present, the company is undergoing a continuous process of rehiring personnel in the Manufacturing Department. The Labor Market in Romania in the clothing sector is characterized by a scarcity in specialized and qualified labor force which poses difficulties for the present company in acquiring the necessary personnel.

Frorm 2004 the company also has implemented the ISO 9001: 2000 standard in Quality Management and has kept upgrading ever since, reaching today the ISO 9001: 2008 level.

Until 2008, the manufacturing process was spread through several locations in the residing area. From 2008 the production process takes place in one location, in Targu- Neamt in a 2400 sqm facility designed specifically to afford the best practice in ensuring labor protection and security measures. The employees work one shift of 8h/ day from 7 am to 3.30 pm for 5 or 6 days per week and do not pertain to any syndicate.

In order to provide the best care in securing labor protection, the company has acquired specialized services in Risk Management from a third party.

After the analysis of the entire process of production the company responsible for the process’ risk assessment has provided with a rapport comprising of the following features in risk evaluation:

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Classification of risk upon frequency and gravity of the maximum predictable consequences;

Risk identification, evolution and dimension in every process and procedure; Hierarchically risk situation throughout the entire organization and optimum

financial and equipment back up accordingly.

Each risk was classified according to the gravity of the consequences inquired in case of an accident and to the probability rate of incurrence. The range for the first classification was between 1 (negligible) to 7 (maximum exposure – incurrence of death) with 3 as the value for medium – reversible consequences. The same scale was applied to the second classification.

After an objective analysis of the risks, the company provided proper equipment for the employees according to the level of risk incurred by the working process. Furthermore, the above mentioned analysis was used in creating the Operational Procedure regarding the proper training in labor protection and security of the employees.

In the procedure, the training provided to the workers is organized according to frequency, level of knowledge, the company position the employee holds and takes place in three stages:

Stage 1: The Basic Training – is realized when the employee has just started working in the company. The person in charge of the training is informing the employee of legal rights and duties regarding labor protection and security. At the end of this stage, the worker is tested and upon reaching a level of 80% of correct answers, passes to the next stage of training.

Stage 2: The Working Area Training – takes place where the employee will work. The employee is informed about the risks posed by his/her work and the proper measures to be taken when work accidents occur.

Stage 3: The Renewal Training – takes place periodically according to the employee’s position in the company and ranges between 3 to 6 months. The training contains knowledge from the previous two trainings and any other updates in the field of labor protection and security.

The described above system used by the company SOFIAMAN in implementing labor protection and security has proved its value by maintaining 0 degree of occurrence of work related accidents its implementation. Overall, the company has not incurred any work related accidents.

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5.12. Case 4(3-4 pages)

Based on the tradition of craftsmanship in the region, FAMOS SA Odorheiul Secuiesc was founded in 1948 as Craftsmen ‘s Cooperative- Joinery Section in Odorheiu-Secuiesc, by the association of a few joiners.

After a decade of existence, in 1959, becomes an enterprise with organized production, it’s dynamic development allowed competition with the big factories built of state investments.

In 1990 the unit is organized as an independent factory named Woodworking Company FAMOS Odorheiu –Secuiesc and the furniture section from Cristuru Secuiesc is attached to it. The number of employees is now 509 and the turnover is more than 7,5 mil. euro In the year 1999 SC FAMOS became a private company. The activity of SC FAMOS SA is the furniture production completed with commercial activities, mediations and import-export activities. The production activity is of 8 mil.euro out of which 98% furniture and 2% timber. Main business partners are companies from Germany, Sweden, Great Britain, Holland, Slovakia and Austria. 99% of the furniture production is exported. The wooden materials are mainly indigenous and the finishing materials, fittings and woodworking tools are 50 % imported.

The company is certified ISO 9001/2001, OHSAS 18001:2007; certified laboratories for the quality control of the raw materials and of the finished products and at this time working on implementing also ISO 14001 for environment certification.

Engineers and Health and Safety Office try to identify the way in which the categories of risks(ergonomic, biological and chemical, noise and damaged temperature) affect the workers in function of groups of age, sex and field of activity, putting in evidence the consequences of these risks on health and safety at work. In spite of these measures some of these risks continue to be present in the Romanian companies.FOREST PRODUCT is situated in the north industrial area of Pitesti and it is a Romanian -German manufacturing joint venture with completely private capital ownership and with a wide experience in wood-working industry, whose activity is based on normal plywood, special designed plywood and densified bedslats output.

Exports represent 70% of the total output. The most important partners of FOREST PRODUCT are from Germany, Austria, Italy, Hungary, Bulgaria, Japan and Middle East.The company is endowed with German equipment and installations that ensure a high quality of products.

Having 250 high skilled employees and thanks to its flexible technologies, the company is able to satisfy the exigencies of its clients.

Along the years FOREST PRODUCT was attested with the following certifications: ISO 14001:2005 and OHSAS 18001:2007; certified laboratories for the quality control of the raw materials and of the finished products.

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The concept of the decent work is well applied in the company. The average salary in FAMOS SA FOREST PRODUCT is around 2300 euro more than the average salary in the woodworking industry. Wage difference between men and women in the factory is not a relevant indicator. The working program follows the reduction of excessive hours that can be detrimental to physical and mental health and they impede balance between work and family life. The employees work in 13 shifts and who wish to work overtime or in the weekend earn extra income.

The company has always considered training a priority for the employees in some specific areas: (ex. in view to avoid the exposure to wooden dust the company imported a new exhaustion installation and it signed also an interesting agreement on vocational training aiming to qualify workers for this special installation).

Despite its already profitable position, in the beginning of 2010 the management decided to introduce an internal restructuring program, in order to adapt to changing market conditions and to the challenges of the crisis. The restructuring program was achieved based on a partnership between management and the targeted personnel.

The FOREST PRODUCT incubator project was well received by employees without loosing jobs. The company offers alternatives to employees including a retirement option and replacement within or outside the company. This innovative initiative has determined also to introduce factory-specific skills at an early stage in vocational training and to focus the training on multi-skilling, re-training and up-skillling.

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6. CONCLUSIONS and RECOMMENDATIONSonclusions

6.1. Conclusions

Trade unions agreed with the importance of working in partnership to alleviate the worst effects of the crisis and convert it into an opportunity for maintaining as many people as possible in jobs and for encouraging entrepreneurship. They underline the necessity of programs, policies and management strategy for employment, health and safety at work, better working conditions to be implemented by the authorities and the employers.

Employers’ organizations admit it is more difficult during the crisis to keep people in jobs and to get those who have lost their jobs back to work as quickly as possible. Another problem sustained by the employers is the professional reconversion and qualification of the labor people. Training costs have increased rapidly, mainly due to the fluctuation of the labor force, reaching investment up to 1 percent of the turnover of the companies, but many of them cannot afford it. The employers demonstrate the high fiscality on the salaries in Romania and the impossibility to employ more workers with higher salaries. The companies face a dilemma: they need top technology for development but their under capitalization means cannot buy it.

The Government has reinforced efforts to provide a solid basis for discussion with social partners and to agree with the anti-crisis measures package.

Specialists consider the crisis effects visible in all economic sectors in Romania. The exodus of specialists will continue with negative effects in the coming years based on the lack of programs for training supported by the authorities and on the fiscal pressure and low productivity in Romania. The uncontrolled and illegal migration will be reduced during the crisis in favour of legal migration that assures the best possible incomes.

6.2. Recommendations

The Government must put people at the centre of its recovery plans and use the current crisis as an accelerator for improving the entrepreneurial environment in Romania. It should mobilize all available instruments and fully integrate growth, employment, health and safety at work, solidarity, social protection and inclusion strategies.

The Government could be fully committed to proactively assist the SMEs sector and the Romanian manufacturing industry in general through suitable initiatives to mitigate and minimize the negative impact of the global crisis on the Romanian economy.

The foremost priority of the Government is to create confidence in the Romanian economy and to ensure sustained employment generation in the country.

The Government must be open to any suggestions that would enable Romanian economy to meet the challenges of the present crisis.

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The employers must strengthen the social dialogue both with the Government and trade unions in favour an integrated approach of anti-crisis measures at sectoral and enterprise levels. They must provide examples of how an improved social dialogue can benefit competitiveness.

The employers must try to maintain as many people as possible in jobs by a temporary adjustment of working hours in combination with re-training to facilitate internal job transfers or transitions to other companies and/or sectors in line with Flexicurity. In this case it is important to ensure the exchange of best practices between employers and trade unions from the other EU Member States and Romania.

In order to maintain the attractiveness of the Romanian economy and to prevent a human crisis during this period it is important to work out a short-and medium term strategy.

The trade unions must assist the unemployed and young people from companies to start new business or to find a new job; a mutual learning and the exchange of best practices with other trade unions from EU Member States to limit the social impact of the crisis should be a benefit. Trade unions must intensify the lobby activity to policymakers so as to understand properly the issues facing the Romanian economy and the people working in its sectors.

REFERENCESeferences

ILO/IMF Conference on “The Challenges of Growth, Employment and Social Cohesion” Oslo the 13th September 2010

OECD -2010 Economic Review-European Union, September 2010

National Institute of Statistics 2009 and 2010

European Commission – Sectors’New Skills for New Jobs December 2009

International Labour Organization-Recovering from the crisis – A Global Jobs Pact Geneva, 19 june 2009

The Framework Directive 89/391/EEC on Safety and Health at Work and its mplementation in Small and Medium –Sized Enterprises

ILO (2009) Report of the Director General “Tackling the global jobs crisis recovery through decent work policies”

The International Institute for Labour Studies/International Labour Organization (2009) “The Financial and Economic Crisis: A Decent Work Response”

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Christina Leucuta - Sectoral coverage of the global economic crisis – Implications of the global financial and economic crisis on the Romanian textile and clothing industry September 2009

WTO is working to mitigate impact of economic crisis on trade 2009

ILO Working Paper no.271 The Global Economic Crisis

Progress –The EU programme for employment and social solidarity 2007-2013

The European Social Fund: Adaptability of Enterprises and continuous training of workers 2009

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