Moldova Railways faces strike threat over unpaid salaries
Moldova Railways is grappling with significant financial difficulties, as wage arrears for employees continue to mount.
As of August 2024, only seven out of the 31 branches have received their salaries, with the total debt reaching 191 million lei. Despite the authorities' claims that payments are being processed, railway workers have announced plans to strike on February 28 unless their demands are met. These include the payment of overdue salaries, subsidies for the sector, and measures to curb the mass exodus of staff.
The financial troubles of Moldova Railways date back to 2009, when a sharp drop in freight transport—falling from 11 million tons in the previous year to just 4.4 million tons—triggered the crisis. The decline in cargo transport continued, further exacerbated by the economic impact of the ongoing war in Ukraine. Freight volumes dwindled after the reopening of the Odesa port in 2022, leading to a reduction in revenue and delays in salary payments.
In response, Moldova Railways implemented a four-day workweek starting in September 2024, citing a significant drop in freight volumes. However, efforts such as the auctioning of old wagons and parts have not been sufficient to alleviate the financial strain. The company is exploring the sale of unused assets like properties and old locomotives in a bid to generate income and pay off outstanding debts. Although the authorities insist that the payment process has begun and that Moldova Railways is working toward financial recovery, the ongoing crisis raises concerns about the company's sustainability.
The situation reflects the broader challenges facing Moldova Railways, as the company struggles to modernize while addressing its debt and staffing issues. Despite efforts to improve the financial situation, experts warn that the company may need more comprehensive reforms to avoid further disruptions and ensure long-term viability.
Translation by Iurie Tataru
