Search

When dealing with the issue of increased labour productivity in steel companies, as well as in any other economic sector, managers are faced with a difficult choice - investing in technologies and competencies or diminishing the number of jobs. The economic literature and statistical data available on the Romanian steel industry has revealed that the second option has often been the case in the past 10 years or so. Nevertheless, in order to reach the economic indicators of Westerns countries, the main Romanian steel plants should decrease the number of employees from 18 500 to 8 400. We argue that the accelerated production after the crisis would also entail increased productivity, but the lack of technological advancement and significant investments in competencies will not allow economic efficiency to exceed the average of EU developed member states. [ABSTRACT FROM AUTHOR]

The ferrous metallurgy represents a traditional occupation, being extremely important for the national economy. Romania has gone through all the stages foreseen for the restructuring of this industry in compliance with the provisions of the European Council's Decision (1999/582/EC) concerning the partnership for the EU adherence, which included a special chapter on ferrous metallurgy, the provisions of the Protocol no. 2 (ECSC), as well as with other significant normative acts subsequently enacted. Following the performed restructuring - privatizations, state allowances, liquidations, re-technologization - the activity of this sector has developed, still being under the potential of the Romanian metallurgic industry. Nowadays, the disadvantages relating to energy intensity and the increased need for imported raw materials are doubled by the difficulties generated by the global crisis. [ABSTRACT FROM AUTHOR]

The adjustment of the Romanian steel industry restructuring programmes to the requirements of the EU and the implementation of such programmes has supported the development and growth of Romanian steel companies. The total amount of State aid allowed in Romania has been of € 1,2 billion and was mainly awarded for financial restructuring and to a smaller extent for exemption from VAT and corporation tax. The EC has constantly monitored the Romanian steel industry and the way in which State aid has been granted by the Romanian government. As a consequence of the restructuring process--whit entry into force the EU Association Agreement was enforced -- several obsolescent plants have been shut down because of physical and moral wear and tear, and the total number steelworkers has decreased significantly. [ABSTRACT FROM AUTHOR]