Romania Country Study 2016

The Romanian economy suffered the blow of the 2008 economic crisis, and Romanian garment companies were not immune to the hit. Major changes were made to the Labour Code to counteract the economic downturn, while companies became more specialised as a way to
address changing economic circumstances.

Because Romania has been a member of the European Union (EU) since 2007, the country’s labour legislation meets all EU laws and labour standards. The country has also ratified all International Labour Organisation (ILO) conventions referred to in Fair Wear Foundation’s Code
of Labour Practices except for Conventions 26 and 155.

Major issues of concern are wages; working hours; sick days; trade union representation; and, to some extent, occupational health and safety issues. After the changes in labour legislation, social dialogue and collective bargaining power in the garment industry became less effective.
Even though trade unions worked together to gain members during economic downturn, most factories still lack active worker representation. Often, the functioning of worker representatives is affected by low involvement from management.

In recent years, Romania has made significant steps towards reducing macroeconomic imbalances, resulting in increasing macroeconomic and financial stability. At the international level, textiles production has shifted from Asia to Eastern European countries, including Romania, since the beginning of 2014. This shift is based on several factors, but the most significant are the continuing escalation of prices in Asia and the uncertain political situation in Egypt and Syria, which push western buyers to countries like Romania.

FWF will continue to provide updated information on the Romania page, and will update this country study on a periodic basis in the future

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