“According to the contract of employment, if Romanian Post S.A. was forced to cut workforce, the affected employees would receive severance packages depending on the years of service in the Romanian Post. The maximum amount sacked workers could receive is the equivalent of 30 salaries correspondent to over 30 years of service”, the company said.

The Romanian Post said it is a self-financing company and that salaries and severance packages will be paid to employees from its own sources.

According to the restructuring and modernization strategy approved by the Government last week, some €113 million will be invested in the modernization of the Romanian postal service, and a large portion of this amount represents the investment in sorting stations.

The automation of the sorting stations (constructions, postal equipment, software, training courses) would cost the company around €70 million, the implementation of enterprise resource planning (ERP) software some €10 million, and the acquisition of printing equipment around €12.5 million.

Another €6.7 million will be invested in franking machines, reorganization of mail shipping and of cash costs €10 million, and the expansion of the VPN network around €4 million.