AHK Romania calls on the Government to support the automotive industry

AHK Romania, a member of the PAR-Parteneriatul Auto Roman, calls for strong support from the Government for the Romanian car industry. One business day in the automotive and components industry in Romania generates a turnover of 124 million Euro (31 billion Euro/ year) with 250 working days/ year.

“We are at the beginning of a great slowdown in the economic rhythm with a massive and unpredictable impact on the Romanian economy, caused by the Covid-19 virus. For this reason, economic measures must be decided from the beginning in the spirit of the fight against a long-term economic recession. Short-term measures are not sufficiently effective. We need strong and long-term support. Measures without bureaucracy, without financial limit, to help all enterprises, small, medium, large, regardless of the origin of the capital – allowing specific measures for certain industries but without neglecting any,” AHK said in a statement.

AHK reported the following risks for the automotive industry:

– The availability of the labor force, due to the stopping or mass reduction of the activity.

– Lack of liquidity and financial collapse, problems due to lower customer demands, inability to pay providers, open credit lines, etc.

– Reduction of sales of new vehicles due to socio-economic blockages

The AHK proposals are as follows:

– Compensation of the costs with keeping the personnel home – parents / technical unemployment / quarantine, from the unemployment budget: amendment of the Labor Code to introduce the possibility for the employer to unilaterally decide on a reduced working time, with a proportional reduction of the salary, during the effects of the crisis Covid-19, correlated with a compensation from the Government for this reduced schedule, including for indirect jobs affected by the crisis.

– Extension to 5 days / week of telework: amendment of the Labor Code in this regard. Amendment of the Labor Code to introduce the possibility for the employer to unilaterally decide to schedule the holidays, in cases of force majeure. Amendment of the Labor Code to introduce the possibility for the employer to unilaterally decide to reduce the work schedule from 5 days / week to less than 4 days / week (current limit).