The Romanian government announced that companies making personnel cuts as a result of restructuring will be given 30 million lei for each employee kept on by the firm. This money will have to be used either for development projects or to increase production capacity and assurances that no further lay-offs will happen in the future must be given. These plans were announced as part of the government's attempt to enforce social protection regulations .
Redundancy is a problem in a number of firms.
At the Sidex steel mill production has been cut to 10,000 tonnes per day and will result in an initial 700 jobs lost followed by a further 5250 in the near future. Renault confirmed that they will have purchased 51 percent of Dacia shares by 1 September. This will mark the beginning of major restructuring which will see the loss of 11,300 jobs by the year 2004. The Romanian government has removed its financial support for the Rafo and Petromidia oil refineries . Radu Sirbu, head of Romania's state privatisation agency, FPS, reported that three bids have been submitted for the purchase of Petromidia.