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Partial payment of wages in kind. The Committee notes the Government’s statement that whereas the payment of wages in kind is in principle prohibited, there are still cases of wages being paid in the form of goods upon the specific request of the employee, or in accordance with regulations of certain agricultural units that permit supplementary payment in the form of agricultural products, such as wheat and sugar, and oil. It also notes that in the first five months of 2007, the cash equivalent of all payments in kind amounted to 5.9 million lei (approximately US$515,635) that represents 0.0011 per cent of the total wage bill. The Committee requests the Government to closely monitor the situation and keep it informed of any new developments in this regard.

The Committee notes that according to the information provided by the Government, the labour inspection services and the trade unions did not report any instances of payment of wages in the form of alcoholic drinks, narcotic substances or tobacco products during this reporting period. The Committee welcomes this positive development and requests the Government to actively pursue its policies seeking to prevent the recurrence of such phenomena in the future.

The situation of wage arrears. Further to its previous comments, the Committee notes the Government’s statement that it is undertaking various legislative measures concerning the ongoing problem of accumulated wage arrears. In this connection, the Government refers to the adoption of the new Labour Code (Act No. 154-XV of 28 March 2003) providing for the employer’s obligation to pay wages as priority to other payments (section 144) and the liability of banks and public authorities in case of delayed payment of wages (section 146). It also refers to Decree No. 678 of 11 July 2005 setting out an action plan and measures aimed at the elimination of wage arrears and to Decision No. 1240 of 30 November 2005 restricting the possibility for salary increase, bonuses and other incentive payments to managers of state enterprises experiencing wage arrears until all wage debts are completely eliminated. The Committee would appreciate receiving copies of the abovementioned instruments. The Committee also notes that the National Commission for Consultations and Collective Bargaining discussed on several occasions the question of wage arrears and recommended measures. It requests the Government to provide additional information on those discussions and recommendations.

Further, the Committee notes the statistical data provided by the Government showing that in 2006 more than 800 inspection visits were carried out, and 100 cases of administrative contraventions were identified including wage-related offences. The Government indicates that as the result of these efforts, the total accumulated amount of wage arrears has considerably diminished. As of 1 January 2007, the wage debt stood at 114.7 million lei (approximately US$10 million), as compared to 638.6 million lei (approximately US$56 million) on 1 January 1999. The Committee would appreciate if the Government would continue to supply up to date and documented information on the evolution of the situation of wage arrears.

A request on certain other points is being addressed directly to the Government.