Trade unions consider government’s efforts in decreasing informal economy as insufficient

Confederation of Trade Unions of Moldova considers insufficient the efforts made by the government in decreasing informal economy. According to CSRM chairman Petru Chiriac, the Executive let without any attention the proposals of trade unions and social partners, regarding creation in Moldova of an Economic and Social Council, Labor Court, institution successfully functioning in many democratic countries of the world in order to decrease the informal economy. At the same, he noted that the government did not support either the proposal of CSRM regarding the obligation of registration by the employer of individual labor agreements. The union leader highlights as well the low level of the minimum wage and requires to equal it to minimum of existence, as well as to periodically adjust it according to inflation rate. Fighting the informal economy phenomenon has to be a common goal of all social partners, and actions to be taken for reducing the informal sector have to be concentrated in a strategy or national program, Chiriac mentioned. In the same context, the vice-chairman of the Confederation of Free Trade Union „Solidaritatea”, Oleg Budza, considers that the percentage of persons occupied within the informal economy is higher than showed in statistic data, according to which, in 2005, of about 1,42 million employed persons, 12% were working in the informal economy. According to Budza, workers are fleeing the formal sector for the informal one because of the low level of wages, wage arrears, price increase and lack of workplaces with attractive salaries. The trade unionists stated that in order to decrease the informal economy rate, creation of an appropriate system of social protection and information of employees on their labor rights and risks of unprotected work is needed. They state that the government should set sanctions for all businessmen going for informal economy. „If the country wishes to join the European Union, Moldova shouldn’t to be a country where informal and cheap labor is practiced”, the trade unionists added.