Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 05BUCHAREST665, ROMANIA: TRADE UNIONS VIEW THE NEW ROMANIAN

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #05BUCHAREST665.
Reference ID Created Released Classification Origin
05BUCHAREST665 2005-03-17 09:16 2011-08-25 00:00 UNCLASSIFIED Embassy Bucharest
This record is a partial extract of the original cable. The full text of the original cable is not available.

170916Z Mar 05
UNCLAS SECTION 01 OF 03 BUCHAREST 000665 
 
SIPDIS 
 
STAFF FOR DRL/IL - ARLEN WILSON 
STATE FOR EUR/NCE - WSILKWORTH, EUR/ERA 
STATE FOR EUR/EB - KIMBERLY BARR, EB/IFD 
DOL FOR ILAB - TFAULKNER 
STATE PASS USAID, USAID FOR E&E 
 
E.O. 12958: N/A 
TAGS: ELAB ECON PGOV RO
SUBJECT: ROMANIA: TRADE UNIONS VIEW THE NEW ROMANIAN 
GOVERNMENT AS AN ADVERSARY, NOT A PARTNER 
 
 
SENSITIVE BUT UNCLASSIFIED.  NOT FOR INTERNET DISTRIBUTION. 
 
REF: A) BUCHAREST 00916, B) BUCHAREST 01748, C) BUCHAREST 
02900, D) BUCHAREST 00130 
 
Summary 
---------- 
1.  (SBU) Romania's principal trade union federations are 
unanimous in taking the position that the existing labor 
code requires enforcement, not amendment.  They hold out the 
possibility of a general strike if the GOR modifies the code 
without their consent.  For their part, businesses in 
Romania will make a case that amending the labor code will 
bring more jobs.  End Summary. 
 
Unions' Views Divided Over New Government 
-------------------------------------- 
2.  (U) EconOff in the past weeks has met with Marius Petcu, 
CNSLR-Fratia trade union confederation, Liviu Luca, Atlas 
Trade Union, Iacob Baciu, Confederation of Democratic Trade 
Unions, and Bogdan Hossu, President of Cartel Alfa union 
confederation to discuss their opinion of the new right-of- 
center coalition Government, which replaced the center left 
Social Democratic Party (PSD) Government in December. 
 
3.  (SBU) Marius Petcu, CNSRL-Fratia, complained that the 
new government seems uninterested in engaging in dialogue 
with its "social partners," claiming lack of consultation 
with the unions before the flat 16% income and profit tax 
was adopted, while opining the new GOR likewise plans to 
modify the labor code without the unions' approval.  He 
cited the cancellation of the position of Minister Delegate 
for Relations with Social Partners within the Labor Ministry 
as additional evidence.  Bogdan Hossu, President of Cartel 
Alfa, agreed  "social dialogue" seemed absent from the new 
GOR's governing program.  However, Hossu appreciated the 
fact that PM Tariceanu was the first Prime Minister to 
declare publicly that Romania's fiscal policy, public 
deficit or pensions are not issues to be imposed on Romania 
by the IMF, but represent decisions of the Romanian 
Government. 
 
4.  (SBU) Iacob Baciu, President of the Confederation of 
Democratic Trade Unions (CSDR), stated that CSDR is still n 
the process of forming an opinion of the government.  Baciu 
notes the new government has many young faces, who have 
neither links to the past nor political debts and are 
focused on the future.  He is willing to give the new 
government time to see whether their deeds match their good 
intentions.  Atlas Trade Union President Liviu Luca also 
took a more moderate position, stating his position is "wait 
and see."  However, he was adamant about the necessity of 
the Government consulting with unions regarding any changes 
in the labor code. 
 
President Traian Basescu Draws Mixed Reaction 
--------------------------------------------- 
5.  (SBU) Baciu stated that new President Basescu is 
Romania's first real President since the revolution.  He 
views Basescu as direct, pragmatic and willing to tackle 
tough problems like corruption.  Luca, on the other hand, 
reproached Basescu for attempting to play all roles within 
the government, including President, Prime Minister and 
Parliamentarian.  Petcu characterized Basescu as 
"different," declaring he should observe the Constitution 
and be apolitical, rather than presenting strong views on 
everything.  Like Luca, he characterized Basescu as a one- 
man show.  He criticized Basescu for overacting and at times 
behaving unprofessionally, presenting a poor image of the 
Romanian Presidency to foreign audiences. 
 
Unions Question Flat Tax, Effect on "Gray" Economy 
--------------------------------------------- ----- 
6.  (SBU) Stiff union opposition to the flat tax was the 
principal reason the former PSD Government shelved the 
proposal last year.  Petcu reiterated the unions' standard 
theme in opposing the flat tax, characterizing it as 
inequitable, favoring the wealthy.  He claimed that 
employees with average and below-average incomes are 
disadvantaged by the flat tax.  Petcu also is concerned that 
the flat tax will result in less money into the state 
budget, which could result in the government not having 
sufficient funds to cover salary increases negotiated last 
year with the previous government for teachers and medical 
staff, worrying such raises might be cancelled.  Hossu, like 
Baciu, is skeptical of the flat tax, characterizing it as a 
"higher pressure for the small taxpayer, and a special aid 
for big taxpayers."  Luca's position on the flat tax  was 
more moderate, stating that for energy sector employees, who 
tend to have higher salaries, it is advantageous, although 
still disproportionately benefiting the rich.  Nevertheless, 
he also questioned whether the budget could sustain it. 
7.  (SBU) One of the new GOR's purposes in introducing the 
flat tax was to "surface" the underground, or gray economy, 
in which workers' wages are either underreported or not 
reported at all.  Luca commented political will is required 
to surface the gray economy through tough enforcement 
measures.  Those who don't pay taxes now aren't going to 
change willingly, and Luca doubts the political will to get 
tough exists.  Hossu reminded that payroll taxes remain high 
(49.5% of wages) which means employers will continue to 
underreport wages or pay employees "under the table," 
especially in fields such as textiles and construction. 
 
Unions Unanimously Reject Changes to the Labor Code 
--------------------------------------------- ------ 
8.  (SBU) Regarding the Labor Code, the union leaders are 
concerned the new government will attempt to modify the law 
without consulting them.  They claim they don't want any new 
rights, only to preserve the rights they have now.   Hossu 
was most adamant, saying that the unions will only seriously 
discuss changes to the code when employers are committed to 
observing it.  Fratia's Petcu and CSDR's Baciu made it clear 
that whether the labor code is modified by emergency 
ordinance or law, they are likely to take their workers into 
the street in a general strike.  The union leaders were 
emphatic in stating the government is wrong in suggesting 
without changes in the labor code foreign investors won't 
come to Romania.  Instead, the government should be looking 
at other measures, such as reduction in the VAT and payroll 
taxes.  The trade unionists insist that any changes in the 
labor code must be negotiated between unions and  employers' 
associations without government intervention. 
 
AmCham, FIC Should Join Romanian Employers' Associations 
--------------------------------------------- ----------- 
9.  (SBU) In a theme we've heard before, the trade unionists 
desire foreign employers becoming members of Romanian 
Employers' Associations.  The reason they want  this is that 
the unions and these employers' associations negotiate the 
National Labor Agreement.  Because foreign business 
associations such as the American Chamber of Commerce 
(AmCham), the Foreign Investors' Council (FIC) and the 
British Chamber of Commerce are not members of the 
Employers' Associations, the unions cannot bargain directly 
with them over the national labor contract. 
 
10. (SBU) Trade unionists agree that holding discussions 
only with Romanian employer associations is inadequate, and, 
further, is not marked by an atmosphere of equality in the 
relationship.  They claim that the Romanian employers' 
associations as they currently exist are weak, their 
practices non-transparent, their leaders are "dinosaurs," 
and that the path to power in these associations is by 
paying to get elected. On the other hand, the unions believe 
the foreign business associations are in a position to 
"clean up" the employers' associations and gradually "push 
out" the corrupt Romanian employers.  Baciu even opined that 
the Romanian employers' associations are the real "enemy" of 
foreign investors, not the unions, who instead are their 
real social partners. 
 
Hope Fades for Swift Labor Code Modification 
-------------------------------------- 
11.  (U) The Labor Ministry held its first discussions with 
employers' associations and trade union confederations in 
February.  The trade unionists rejected completely any 
changes to the labor code and refused further discussions on 
the Labor Ministry's proposals.  As the unions began 
picketing at municipal, prefecture and GOR offices, the 
Government retreated into a mediation role, leaving it up to 
the employers associations and the trade union 
confederations to continue negotiations.  The resulting 
dialogue has been counterproductive, leading even Labor 
Minister Barbu to conclude that Labor Code modification is 
unlikely in 2005. 
 
Comment 
------- 
12.  (SBU) Romanian trade union leaders are cautious, but 
clearly concerned, that a center-right, business-oriented 
government has come to power in Romania.  In the past, the 
unions, with the exception of Fratia (which always has had 
an affiliation of the former ruling Social Democrats), 
frequently complained the PSD was non-responsive to their 
demands.  Now they concede the PSD ultimately gave them what 
they wanted in the form of the so-called "Red" Labor Code, 
which both foreign and domestic businesses have roundly 
criticized as creating an overly expensive, inflexible labor 
market in Romania. 
 
13.  (SBU) Labor unrest in the near future may be on the 
rise.  The unions are firmly united in their opposition to 
amendment of the labor code and thus far have succeeded, 
given the weakness of Romanian employer's associations and 
the GOR's current retreat from an active role.  The unions 
have been highly successful in mobilizing their membership 
in defense of the code, with over 20,000 trade unionists 
turning out for a single day of protests in Arad, Brasov, 
Targoviste and other smaller cities.  The unions' trump card 
of a general strike is a threat to be taken seriously.  As 
the government is aware, a general strike could paralyze the 
country, derail Romania's steady macro-economic progress and 
topple the current fragile coalition government. 
 
14. (SBU) Romanian and foreign companies, however, are 
planning to mount a counter-campaign to inform the public 
about the benefits of a more flexible labor code.  They will 
argue that more jobs will come to Romania if investors 
perceive Romania to be "open for business."  An important 
signal for this new openness, according to business, has to 
be a reformed labor code that allows Romania to take 
advantage of its low labor costs more effectively. 
 
14.  (U) AmEmbassy Bucharest's reporting telegrams are 
available on the Bucharest SIPRNet 
website:www.state.sgov/p/eru/bucharest. 
 
DELARE