"How has EU integration affected production and labour strategies in the Romanian shipbuilding sector? This report shows that there has been a gradual integration of Romanian shipyards into the European market, combined with a segmentation of labour after the 2000s. The EU accession process enabled Romanian shipyards to find international clients, following the collapse of orders from the state after 1989. As labour costs were around 10 times lower than in western Europe in the 1990s, most shipyards were able to survive by producing low(er) cost vessels for large shipyards groups, such as Aker/Fincantieri and Damen. Nevertheless, this wage gap has also contributed to a massive (sometimes circular) migration to western Europe, resulting in severe labour shortages. This, in turn, contributed to wage increases in Romania and the ‘import' of shipbuilding workers, particularly from Vietnam. These migrants are directly employed by shipyards. Union density in large shipyards has been over 50 per cent, enabling unions to conclude yard level collective agreements, covering all employees and those working for large subcontractors.
Somewhat surprisingly, the severe labour shortages combined with opportunities for Romanian workers to obtain higher wages in western Europe, contributed to equal or higher wages for indirect workers (currently almost half of the sectoral labour force). Their lower job security makes it easier for them to take advantage of short-term contracts for better paid jobs abroad. Thus, indirect workers can use their mobility power to obtain a higher income than direct employees, under certain circumstances. Nevertheless, they generally receive lower pensions and incur more injuries. Overall, EU integration has provided opportunities and challenges for both companies and labour. Despite new opportunities linked to the green transition, both unions and managers are concerned that severe labour shortages and further wage increases, might result in the relocation of production further east to countries with even cheaper labour."

Support: Digital;Paper

ISBN (PDF) : 978-2-87452-726-5

Legal deposit : D/2024/10.574/25