[stop-imf] Romania: Union Denounces IMF: "Would allow Romanian workers to be used as slaves"

[robert weissman]

Associated Press
Major Trade Union Comments on IMF
07.07.2005, 06:56 AM

A major trade union criticized the International Monetary Fund for what
is said was its opposition to collective labor contracts, a paper
reported Thursday.

"The IMF has made numerous efforts to destroy the labor code, to turn it
into a law with no content which would allow Romanian workers to be used
as slaves at their place of work," said Dumitru Costin, head of the
union, in an interview with the daily Adevarul.

The National Trade Union Bloc, which Costin heads, claims more than 1
million members.

Romania's labor code includes collective labor contracts which favor
workers, giving them broad benefits and rights, to the detriment of
owners, critics say.

In a recent strike by thousands of railway workers over demands for
higher pay, the government said it could not award railway workers wage
hikes due to its agreements with the IMF.

In June, the government reached an agreement with the IMF, pledging to
control public spending and keep the budget deficit to about 0.7 percent.

A US$400 million (euro333 million) standby loan agreement had been
stalled since March over disputes over the level of public spending.

Earlier this year, the IMF said that tighter fiscal policies were needed
to keep inflation under control.