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The Committee notes the information provided by the Government in reply to its previous comments.

With regard to the payment of wages in kind, the Committee notes that, according to the Government’s report in the first half of 2003, there has been a significant progress in reducing the amount of wages paid in the form of goods and services. The Government indicates that, whereas in 2002, 253 million lei worth of goods and services were paid in lieu of money wages, or 5.1 per cent of the annual wage bill, in the first semester of 2003 the payment of wages in kind represented 52.9 million lei, or 1.89 per cent of the annual wage bill. The Government adds that, whereas the payment of wages in kind is practically non-existent in the budgetary sector and is maintained at very low levels in commercial enterprises, transport and communications, hotels and restaurants and the financial sector, it remains widespread in agricultural enterprises where money wages are often replaced by cereals, vegetable oil, fodder and other agricultural products essential for the worker’s family. It is known, for instance, that agricultural cooperatives often distribute to their workers any unsold part of their produce in place of cash wages. While noting that the agricultural sector accounts for almost 60 per cent, or 31.4 million lei, of the total amount representing payments in kind in the first half of 2003, the Committee asks the Government to clarify in its next report whether such extensive practice concerns only cases of partial payment of wages in kind and, if so, to specify the average proportion of workers’ wages being paid in kind.

Moreover, the Government states that in 2002 and the first half of 2003 the labour inspection services have not reported any cases of payment of wages in the form of alcoholic drinks, narcotic substances or tobacco products, nor have any such cases been denounced by trade unions or the workers themselves. The Committee is satisfied that according to the statistical information communicated by the Government the situation is clearly improving but considers the percentage of the inspected enterprises, currently estimated at 15 per cent, which continue to practise wage payment in kind in violation of section 29(3) of the Wages Act of 2002 to be worryingly high. In this connection, the Committee welcomes the Government’s announcement that a legislative reform has been initiated to reinforce the system of sanctions for infringement of the labour legislation and accordingly to amplify the powers of the labour inspectorate. The Committee requests the Government to closely monitor the evolution of the situation and to keep it informed of any further progress made in this respect.

With reference to accumulated wage debts, the Committee notes that on 1 July 2003 the total amount of wage arrears stood at 152.5 million lei, as compared to 217.1 million lei in June 2002, which represents a fall of 58.7 per cent. The Government indicates that, even though wage arrears are no longer experienced in the public sector, the deferred payment of wages continues to affect particularly certain branches of economic activity such as agriculture (64.4 million lei), manufacture (36.4 million lei), construction (14.5 million lei) and transport and communications (10.3 million lei). The Government adds that the average delay in the payment of wages has been reduced from 1.1 months to 0.3 months, although in some cases such as the fishing industry workers continue to suffer delays of over three months. The Government also refers to the activities of the labour inspection services and the results obtained during the period from January to July 2003. Concretely, 2,304 inspection visits were carried out, 15,506 violations were observed, 1,997 persons holding responsible positions were sanctioned and 172.8 thousand lei worth of fines were imposed. In addition, the managers of five major companies were punished each by a fine equal to 150 minimum wages under section 41 of the revised Code of Administrative Offences for non-observance of the periodicity of wage payments.

The Committee notes the positive developments with regard to the settlement of wage arrears and encourages the Government to pursue its efforts to resolve the persisting wage crisis. The Committee understands that eliminating the phenomenon of wage arrears is a long and difficult process, especially in conditions of transition and unfavourable economic conjuncture, but wishes to emphasize, as it has pointed out in paragraph 412 of its 2003 General Survey on the protection of wages, that none of the reasons normally advanced by way of excuse, such as the implementation of structural adjustment or "rationalization" plans, falling profit margins or the weakness of the economic situation, can be accepted as valid pretexts for the failure to ensure the timely and full payment to workers of the wages due for work already performed or services already rendered, as required by Article 12 of the Convention. The Committee therefore asks the Government to continue to report in full on any measures designed to break the vicious spiral of wage arrears, demonetized transactions and deteriorating working and living standards.

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