ETF: Tarom unions demand the resignation of the company’s Board of Directors

Tarom unions demand the resignation of the Board of the company and for a commission of inquiry into the Body of the Prime Minister, in order to check “misuse of administrative and executive leadership,” according to a press release issued on Thursday.

“Representative trade unions and united TAROM take action and launch a strong protest and open position regarding the recent statements from the Council of Administration (CA) TAROM, through the voice of its President, Mr. Dan Pascariu on various aspects of leadership, organization and activity of the national air operator,” it reads the “union representative and united Tarom.”

Unionists say they have found “with disappointment that any occurrence of TAROM in media management does nothing but to make repeated and serious damage to the image of the company, is likely to affect the reputation of its employees and to frustrate efforts – supported in an environment strong competitive and extremely difficult both on intention and internationally – to keep the company on an ascending line on the quality of services offered to passengers.”

All unions consider that the head of the Council of Tarom, Dan Pascariu, “abused his position and behaved unduly and defiant disregarding and humiliating the company’s employees at each intervention, demonstrating a lack of consistency and arguments.”

Unionists accuse “rapacity of the board members, concerned primarily with maximizing their income and benefits” and “the lack of genuine interest of CA to establish a climate of seriousness, professionalism, fairness and confidence in their own values through key nominations of persons without a thorough training and experience in a so particular field as aviation.”

In the same release, they complain on “the obsessive concern of CA to restructure (regarded as an end in itself), meaning by it exclusively staff redundancies without seamlessly communicate a vision and a strategy envisaged to re-launch the company, although staff costs represent only 18% of the company.”

Another issue that displeases unions Tarom is “totally unjustified increase in costs of setting up new management positions, while at the declarative level, there is an intention to restructure.”

Executive Director of Tarom, Nicholas Demetriade said earlier, AFP, that the company’s management considers staff reductions and salary, giving up three aircraft and the operation of flights to areas where conflicts occur, including Egypt.

“We have to make sacrifices and one hand and on the other, and the management, you have to understand that they must give up some things, even in a part of the salary. To be able to ask all people company to accept certain waivers, and we will be … We consider staffing and salary adjustments,” said Demetriade.

He said that Tarom had 2,090 employees and certain areas of activity in which wages are extremely low, it does not matter very much in the balance sheet but are activities that, if kept, even with low wages, provide no advantage, plus any image or activity.

“We create and discussion and problems. So we have to work more efficiently. I need to discuss and analyze – I need so many people to keep them; I need to get 30 people; we get some more,” he noted.

Demetriade said that it was possible to give up certain aircraft Tarom, which should be repaired so they can operate in the coming years, which would require cost.

“But the big problem for us is the following: given such high costs, this aircraft cannot be hired or to others, and we, if we exploit will generate losses,” he explained.

It covers three aircraft, two Airbus A 310, which Demetriade said to be very old and very large oil consuming and hire a plane in 2008 (Boeing 737-800). Tarom fleet comprises of 24 aircraft.

“It’s not a final decision, but a thought that has to materialize after a very careful analysis. Might everyone to conclude that it is good that these planes remain in the fleet? Nobody stops to drop certain destinations, which have the potential to trafficking, such kind of trouble spots where fly Tarom and for a time we see an increase. One of them is Egypt. Now look, “said the official airline.

Instead, Tarom not afforded to buy any new airplanes.

“I can afford either now or over many years. Tarom, to be able to think about the purchase of new aircraft and to unify the fleet, or have to buy new ones, or to find a company that manufactures aircraft and to take these we have and bring us more, but that does not mean buying but a change that would mean a lot to pay and no one is prepared. During the next two years if we can be of profit, who will, then be the management Tarom can think about the purchase of aircraft. Tarom should be able to get a bank as credit and must prove that they can pay their rates. To prove, you have to come up with some very concrete plans,” added Demetriade.

The Council of Administration (CA) of Tarom on June 22 decided to expedite the implementation of measures in the management plan by the appointment of Nicholas Demetriade as administrator-CEO. Meanwhile, Director General, Christian Heinzmann, he was asked, and he agreed to reduce the term from four years to one year.

The CA chief of Tarom, Dan Pascariu recently said that did not comply Heinzmann Board decision to freeze hiring has not begun the process of restructuring, and 30% did not meet any of the objectives established under the management plan.

Pascariu said that for these reasons, the Board of Directors requested the Director-General, Christian Heinzmann, accepted reduced term from four years to one year. Chairman of the Board Tarom said Heinzmann hired 40 people. Although asked to renegotiate employee, he managed to change a single contract.

Pascariu considers that a single expat who runs a state-owned company is lost, because a stranger in such a position is isolated. “An expat state in the forefront of a company is lost. Recommendation that the government will do is not to do this experiment,” he said.

He added that any company’s restructuring had been launched.

Heinzmann said in June the agency AFP that he had signed a document at the request of Pascariu, which provides inter alia that his term was reduced from four years to one year and said she would discuss the situation with the Minister of Transport, Relu Fenechiu.

“If I had not signed, I was fired,” said, then CEO Tarom, who took over this position in November of last year.

Tarom losses of £66 million in the first four months, 30 million more than expected from the negative result under the management plan.

The company ended last year with a preliminary and unaudited loss of 236 million.

Management Plan approved by the Board of Directors in March, provides loss of 143 million this year, 18 million in 2014, followed in 2015 and 2016 the company makes a profit of 92 million, or 173 million lei.

Under the management plan, initiated in March Tarom voluntary recall program staff, to reduce staff by 10% by the year end.

The company also seeks an increase of 100,000 passengers per annum, from 2.3 million this year to 2.6 million in 2016, and an increase in the workload of aircraft, from 68% this year to 75% in 2016.

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