CNSM position, a reference view for the IMF mission in Moldova

Today’s meeting, November 2, of CNSM leadership with Ben Kelmanson, Head of International Monetary Fund (IMF) Mission to Moldova, had an anniversary connotation. This year, and more precisely on August 12, were celebrated 25 years since Moldova became a full member of the IMF. On this occasion, the president of CNSM, Oleg Budza, pointed out that our country, including trade unions, has a precious partner with whom it is necessary to consult on the current and prospective situation of the Moldovan people.

Even at the beginning of the meeting, the leader of the trade unions of Moldova kept to inform the head of the IMF mission on the multiple issues related to the negotiations with the social partners – the Government, the employers’ organizations – and, first of all, the measures taken to halt the exodus of labour force abroad. However, as he mentioned, the most ambitious task of trade unions of Moldova at the moment is to stop the massive migration of Moldovans to work abroad.

That is why the trade unions insist on the achievement of the wage reform of the workers in the budgetary sector and the establishment of the minimum national salary at the minimum level of existence. The CNSM calls for the maintenance of the 8.05 percent of GDP of the wage fund in the budgetary sector, which will allow solving problems with the reform of the wage system. Oleg Budza warned that if the country’s minimum wage does not increase, we risk remaining without labour force, the exodus of workers in countries with higher wages will increase.

Therefore, the CNSM president wanted to persuade Ben Kelmanson that policies are needed to gradually align the amount of the country’s minimum wage to the minimum subsistence level, taking into account the minimum wage values of the countries in the region. In this context, the CNSM insists on raising the country’s minimum wage to the minimum subsistence level and its subsequent setting in the proportion of 50 percent of the average wage in the economy, i.e according to European practice. Also, according to CNSM, one minimum country salary should be set.

The president of CNSM said that the trade unions advocate for the perpetuation of the implementation process of the provisions of the pension reform. He appreciated the valuation fact of this year’s income taken into account when calculating the pension in 2 stages, but he noted that it is necessary to value the income of the beneficiaries of pensions from 1999 to 2000 next year. The CNSM demands the establishment of the pension for workers who have worked under very severe and very harmful conditions.

Oleg Budza told the head of the IMF mission to Moldova that the CNSM is for non-admission of a new Labour Code. Trade unions call on the Government to stop the promotion of the new Labour Code, to abandon the excessive flexibility and liberalization of labour legislation to the detriment of employees’ legal rights and interests, to ensure compliance with the provisions of international normative acts to which RM is part, of the principles of social partnership, etc.

The leader of the trade unions of Moldova said that in order to increase the welfare of the country’s population it is necessary to stop the fiscal pressure on the individuals. In particular, CNSM proposes adjusting exemptions at a higher rate than projected inflation. At the same time, it is proposed to introduce a new tax rate for people with high incomes.

According to president of CNSM, the country’s budget would increase by billions lei if the Government were to enhance measures to fight the informal economy. He reminded that the National Commission for Consultations and Collective Bargaining decided to draft a bill aimed at diminishing informal employment, but unfortunately, the idea was not materialized. Promoting appropriate policies in this area, says Oleg Budza, would increase the state’s capacity to improve the socio-economic situation of the country’s population.

The trade unions are pursuing carefully the achievement of the central public administration reform, pointed out the president of CNSM. In particular, the Confederation pleads for the maintenance of the State Labour Inspectorate, it is against the absence of this institution of the control functions it had previously. “How is it possible to enhance measures to combat the informal economy while reducing the rights of the institution, which is the main tool to eradicate this negative phenomenon?” asks Oleg Budza.

Ben Kelmanson said that it is extremely important for the IMF mission to know the position of the trade unions of Moldova over the problems our country is facing at the moment. He confessed that he felt encouraged, impressed by the way the president of the CNSM presented the state of affairs in the country. The head of the IMF mission said that the issues approached by Oleg Budza are similar to those identified by the international financial institution as topics for discussion with the trade unions.