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Fri, May 24 2013
Wage growth outruns labour productivity fivefold
Salaries in Bulgaria and Romania have registered the biggest increase in the European Union in 2008, showed data by Eurostat, the EU's statistical office.
Wage and other personnel costs per hour worked jumped by 17.9 in Bulgaria and by 21.5 per cent in Romania in the final quarter of 2008 compared to a year before.
At the same time, the two countries offer the lowest wages within the bloc, lagging several times behind other member states.
Bulgaria and Romania also continue to fall drastically behind with the EU’s average labour productivity, which is a main wage forming factor.
Eurostat figures revealed that Bulgaria accounts for only 36 per cent of the union’s average gross domestic product (GDP). The National Statistical Institute (NSI) said this week labour productivity rose only 3.4 per cent in 2008 compared to the previous year.
The cost of labour showed the slightest growth in Malta and France. The statistics revealed old member states raised wage costs by 3.9 per cent from October to December, which is less than for July to September.
Meanwhile, the Confederation of Independent Trade Unions in Bulgaria (CITUB) announced that the National Sports Academy pays the highest wages in the country’s higher education system of 1 347 leva. The medical universities in Sofia, Plovdiv and Pleven are at the other end of the scale with monthly salaries ranging from 709 to 750 leva. Wages at the Sofia University came out top in terms of highest rise last year with a jump of around 50 per cent, the union said.
Source: Dnevnik.bg
Wage and other personnel costs per hour worked jumped by 17.9 in Bulgaria and by 21.5 per cent in Romania in the final quarter of 2008 compared to a year before.
At the same time, the two countries offer the lowest wages within the bloc, lagging several times behind other member states.
Bulgaria and Romania also continue to fall drastically behind with the EU’s average labour productivity, which is a main wage forming factor.
Eurostat figures revealed that Bulgaria accounts for only 36 per cent of the union’s average gross domestic product (GDP). The National Statistical Institute (NSI) said this week labour productivity rose only 3.4 per cent in 2008 compared to the previous year.
The cost of labour showed the slightest growth in Malta and France. The statistics revealed old member states raised wage costs by 3.9 per cent from October to December, which is less than for July to September.
Meanwhile, the Confederation of Independent Trade Unions in Bulgaria (CITUB) announced that the National Sports Academy pays the highest wages in the country’s higher education system of 1 347 leva. The medical universities in Sofia, Plovdiv and Pleven are at the other end of the scale with monthly salaries ranging from 709 to 750 leva. Wages at the Sofia University came out top in terms of highest rise last year with a jump of around 50 per cent, the union said.
Source: Dnevnik.bg
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Appointments
Kamenitza
Yassen Lyubenov is the new head of marketing at Bulgarian beer brewer Kamenitza. Lyubenov has 12 years of experience in marketing in the fast-moving consumer goods sector and has started his career as assistant brand manager at Kraft Foods Bulgaria. He later became brand manager at Wrigley Bulgaria, with responsibilities for Bulgaria and Macedonia. Prior to joining Kamenitza, he was senior marketing manager at Wrigley Russia, where he was in charge of brand expansion into Ukraine, Belarus, Central Asia and the Caucasus. Lyubenov has a bachelor's degree in international business administration from the University of Lincoln, UK.
Employment Agency
Kamelia Lozanova has been appointed the executive director of the Employment Agency, a position she has held ad interim since September 2011, following the resignation of her predecessor Rossitsa Stelianova. Prior to that, Lozanova was the agency's deputy executive director in charge of international projects and European programmes. She has been with the agency for more than 20 years. Lozanova has a degree in Slavonic philology from the St Kliment Ohridski University of Sofia.
Uniqa
Gloria Dimitrova has been appointed executive director and member of the managing board at Uniqa Life Insurance Bulgaria. Dimitrova began her career in 1998 at the insurance supervision directorate, but moved to the private sector and worked for professional services and insurance brokerage firm Marsh&McLennan and US insurer AIG, both in Bulgaria and the Middle East. She joined Uniqa as regional director for Sofia in 2010. Dimitrova has a degree in economics from the University for National and World Economy in Sofia and a master's degree in insurance from the Business Academy in Svishtov.
Beiersdorf
Bedros Kalfayan, general manager of skin care and cosmetics company Beiersdorf Bulgaria, will oversee the parent's company units in Romania and Moldova starting April 1. Following company restructuring, Beiersdorf's subsidiaries in the three countries were merged and are now one unit, part of Beiersdorf Central and Eastern Europe. Kalfayan joined Beiersdorf in 2007 as sales manager and was promoted to general manager in 2008. Prior to that, he worked for Axxon Bulgaria, Ferrero and Rubella. Kalfayan has a master's degree in industrial management from the Technical University in Sofia.
Hewlett-Packard
Sasha Bezuhanova has been appointed Hewlett-Packard public sector director for emerging markets, where she will oversee HP public sector activities in 63 countries, including Bulgaria. Bezuhanova will also be in charge of HP's relations with the European Union. Bezuhanova has been HP's public sector director for Central and Eastern Europe since 2008; before that she was general manager of HP Bulgaria since 1998. Bezuhanova has a master's degree in electronics from the Technical University in Sofia and has completed a managment programme at INSEAD.
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This comment has been hidden by the moderator because it contained квалификации.
this is precisely the problem which unfortunately will make the recovery process in BG very difficult and even delayed. Because if the quality and productivity of BG labor is not dramatically increasing BG will loose a significant share in (future) FDI's. Because even if labor costs are "cost effective" compared to CE but the productivity is also only 1/3 there is no advantage to shift production to BG (only 1/3 labor cost but only 1/3 productivity results in the same costs if production stays in CE, because there is no benefit to shift it to BG). Not mention the extra [...]
Read the full comment effort for integration, communication, transport etc.
Other countries (e.g. RO) by devaluating the currency reducing the labor cost to get competitive again, but due to the currency board this effect is not possible in BG.
SP and GR are suffering similar problems, they have increased their labor costs but did not increase labor productivity accordingly and now have to pay the price (much higher refinancing cost within the EURO and very pessimistic outlook for economic recovery).
I strongly hope that this macro effect will get understood very quickly by each Bulgarian citizen, that higher salaries have directly to do something with higher quality of work and higher productivity, otherwise a fast increase in living standard will not be possible.
Additionally if BG is continuing in hindering itself to pick up prepared EU funding by petty discussion and inabliltiy to adopt administration the outlook gets even more worrying....
Actually, GDP per capita of Bulgaria with $13,200 is noticeably higher than Romania's $12,500.
minimum you do minimum you get.
It begins with education.
It begins working with skills.
It is hours worked not time, but productivity. Of 8 hrs paid 6 hours is reasonable. No pain bo gain.
Higher wages means higher production costs, higher production costs means higher selling price, higher selling price means overpriced against far eastern imports, means factories and manufacturing industry closes down.
This is fact and is showing across most of Europe as the manufacturing industries are closing at the fastest rate in history as cheap Far Eastern imports replace them.
Unfortunately, though Bulgarians and Romanians do deserve higher wages, the final effect is inevitable and dooms both countries manufacturing industry.
Just look at the UK manufacturing industry which has either [...]
Read the full comment moved to the far east or closed down to see this.
Look at the steel industry in Bulgaria if you want proof.
I'm glad that salaries are increasing in Romania, Romanians deserve it, I lived in Romania in the early 90's and at that time the monthly salaries were less than $100. I never could figure out how people survived on such a small salary. Mark Montgomery boboberg@nyc.rr.com
Romania especially and Bulgaria in 10 years are going to have one of the highest salaries in the EU. Dont try and say that Romania is similar to you cause its not! Romania is one of the fastest developing EU States in the EU. You and Romania have nothing in common. Bulgarian media need to understand that very fast.