Stimulating employers and employees may reduce unskilled labor

Paying non-taxable salaries, at least twice a year, would be a good intervention on behalf of the state, and be perceived by employers and employees as a stimulus for reducing unskilled labor. This opinion belongs to associate expert of the Institute for Development and Social Initiatives “Viitorul” Viorica Antonov, reports Info-Prim Neo. At the presentation of the 13th edition of the Social Monitor, Viorica Antonov stated that agriculture, housekeeping services, tutoring sessions, hairdressers’, and dry cleaners are environments where undeclared labor is flourishing. According to the expert, undeclared labor exists due to the inflexible legal framework, excessive fiscal pressure on the entrepreneurial sector, poor healthcare service, low pensions, education of students who expect salaries without providing any substantial services, lack of civil education, etc. “The youth and university graduates, women, and employees close to retirement are the most vulnerable categories; especially vulnerable are Roma women, who mostly work as housekeepers”, specified Viorica Antonov. MP Vladimir Hotineanu, head of the Parliamentary Commission on Social Protection, Healthcare and Family, stated that undeclared labor persists in several fields, and it causes great losses to the national economy. “While agriculture does not pose many risks construction does pose the risk of permanent injury. We want high pensions and quality healthcare, but we still accept unskilled labor”, mentioned Hotineanu. Ana Moldovanu, head of the Socio-economic Protection Department of the National Trade Union Confederation, stated that unskilled labor is mostly the result of loopholes in legislation. “Three out of five employees are employed informally; I believe this alludes to something”, said Ala Lipciu, national coordinator of the International Labor Organization (ILO), quoted by Info-Prim Neo. She added that a practical application of unskilled labor would be the increase of conventional units from 20 to 200 lei, when applying fines stipulated by the legislation on Labor. Annually, the Social Insurance Budget suffers losses up to 5 billion lei due to undeclared labor and “envelope” salaries.