Some bonuses defy the crisis

Foresters, pharma and telecom employees, bankers and insurers received huge premiums and bonuses at the end of last year.

Wages in several industries defied the crisis and surged last December despite the gloomy feelings analysts, companies and authorities had been voicing in the second half of the year with regard to the trend of the economy.

The strongest increase last December was posted by incomes of forestry employees, which went up 41% against November, according to National Statistics Institute (INS) data, to an average net salary of 1,603 RON.

In the ranking of income raises, next came pharma and telecom employees (a 33% increase), insurance (+22%) and banking staff (+20%).

“Significant bonuses were indeed awarded both in the private and public sectors. This means companies can still afford it and the situation is not that bad, that the economy is not in shatters. It is also possible that things got better toward yearend and companies could afford to pay more,” says Nicolae Chidesciuc, chief-economist with ING Bank.

Holiday premiums, the 13th wage and certain bonuses are traditionally awarded in December, but the increases of December 2009 are surprising as most companies had complained about falling sales and major cash problems last year. Moreover, the private environment considerably adjusted its headcount, laying off tens of thousands and announcing it would freeze or even cut wages.

Ruxandra Stoian, partner and HR consulting manager with PricewaterhouseCoopers, says that despite the heavy budgetary constraints of 2009, very few companies moved to slash or eliminate compensations as these are usually stipulated in collective labour contracts, and therefore compulsory. “Still, a comparison with December 2008, when cost cutting moves had already started, shows that salaries actually posted a slight decline,” states Stoian.

At the level of the entire economy, the net average salary rose by 8% from November, to 1,477 RON (350 euros), but on an annual basis it entered negative territory, dropping by 0.8% from December 2008.