The cost of crisis in Romania was paid mainly by employees, and this situation was favoured also by the labour legislation adopted in that period, which was completely contrary to the interests of employees, says the National Bank of Romania (BNR)’s First Deputy Governor Florin Georgescu.
“What is left to the citizen? The distribution of the net national income, so after removing fixed capital consumption, is done between labour and capital. How is divided what is left? It is done predominantly in favour of capital, limiting labour incomes. In theory, the ratio should be 60pct to 65pct for labour and 30pct to 35pct for capital.
In the developed countries, 40pct goes to capital and 60pct to labour. In Romania, the situation is reversed: over 60pct went to capital and under 40pct to labour in 2014, although in 2000 the ratio was balanced — 50pct to 50pct, and in 2008 it reached 48pct to labour and 52pct to capital. The cost of the crisis was transferred unethically to employees, and the ratio deteriorated for labour to 40pct and capital got 60pct. This trend was favored also by the labor legislation adopted then that was completely contrary to the employees’ interests,” the BNR’S first deputy governor said on Tuesday. More…