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IAR workers protest over board allowances rise and stalled salary indexation

The IAR Ghimbav union is staging a rally to denounce a four-fold increase in board members' allowances while a negotiated inflation-linked wage adjustment remains blocked.

The IAR Ghimbav union will hold a protest on Monday, inviting the entire workforce to discuss the more than four-times boost in allowances for members of the company's Board of Administration. Union leader Suba Arpad said the protest follows the government's refusal to apply an inflation-linked salary indexation that was negotiated in June. The statement also noted that the company's workload is below 20 percent, contrasting with Romania's €16.8 billion defence budget.

Union representatives criticized recent foreign military equipment purchases, especially the acquisition of helicopters, arguing that domestic defence firms have been overlooked. They blamed decisions by Minister of Economy, Digitalisation, Entrepreneurship and Tourism Ambrozie-Irineu Darău for the situation. The union called for clarification of the company's financial and operational outlook.

Why it matters

The protest highlights tensions between workers, corporate governance, and government policy on wages and defence spending.

In this story

protestboard allowancessalary indexationinflationdefence spendinghelicopter purchaseuniongovernment policy
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