How Bolojan wants to stimulate the performance of the heads of state companies. “They have many rights and very few obligations”
Prime Minister Ilie Bolojan announced that the Government will no longer grant subsidies or other financing for state companies unless their managers take measures to reform and increase performance. At the same time, Bolojan announced in which form the pension will be allowed to be combined with the salary.
Given that the management contracts at state-owned companies often do not allow the dismissal of managers based on their previous performance, the Government wants to impose a mechanism by which funding or subsidies for these companies will be granted only on the basis of the assumption of clear commitments by the managers.
“Any derogation, any subsidy that is given to a state company should be conditional on the improvement of performance indicators. The big mistake made in previous years is that we appointed people to state companies on the basis of contracts that do not have performance indicators. For some, this was seen as a reward, not as a challenge. I don't want to throw mud at everyone, but thanks to these contracts, they have many rights and very few obligations”, said Ilie Bolojan, at Digi24.
For any kind of funding, I ask that it be doubled by a reform, by an improvement in performance
Ilie Bolojan, Prime Minister of Romania
The Head of Government says that the intervention on managers' salaries is not enough, as performance is needed, but restructuring. “We're trying to put pressure on this whole system,” Bolojan said.
At the same time, the prime minister announced that the draft law will soon be sent to the Parliament to limit the accumulation of the pension with the salary, but only in the case of those who benefit from special pensions.
“Next week, the draft law should enter the government in the version in which the cumulation of the pension with the salary will be possible if they give up 85% of the pension. Special pension, the contributory pension is no problem. We have at least 15,000 employees in that situation. It is abnormal to keep a man out who has no source of income and to keep a man who retired at 50-52 years old”, explained Ilie Bolognese.
