Romania’s National Recovery and Resilience Plan (PNRR) received the green light from the EU Council last week, and the first tranche out of the total EUR 29.2 billion could reach our country in December. Among the strategic investments assumed by Romania are more than 400 new kilometres of motorway, and one of the main obstacles to reaching this target is the labour shortage in the sector.

One of the solutions increasingly used by construction companies is to recruit workers from Asia through specialised agencies. When it comes to infrastructure projects, companies prefer candidates with experience in the Middle East, an area with numerous large-scale works over the years.

“In the first half of November we will run a recruitment campaign in Sri Lanka for 78 workers in two categories – infrastructure, where we are looking for equipment operators, asphalt workers and assemblers, and civil construction – mainly bricklayers and carpenters. The recruitment process starts with three days of practical tests tailored to each trade so that, at the end, we can be sure that the selected people will deliver at the standards required by the construction company that hires them. This time, representatives of the employer will accompany us to Sri Lanka to run the hands-on tests on site. When this is not possible, they can watch recordings of the trials online.”

explained Romulus Badea, Partner at Soter & Partners

The employment contracts for Asian workers are signed for at least two years, and the recruitment company also handles the entire administrative process. Because of the large number of requests lately, issuing visas, work permits and all the necessary documents can take around 120 days.

“It is extremely important for a company that needs workforce from Asia to carefully plan the moment when it contacts the recruitment agency. For instance, if you want to make sure that the workers arrive on site in March or April, the recruitment has to take place in November of the previous year. The pandemic brought restrictions that slowed down the process, and the demand for Asian workers doubled in 2021. At the same time, the processing capacity of local authorities decreased, which in most cases translates into longer turnaround times.”

explained Romulus Badea, Partner at Soter & Partners

If in 2016 the authorities issued 5,500 work permits for foreign workers, the ever-growing labour shortage in Romania made the number of permits granted to foreign workers reach 50,000 in August 2021, following the market demand.

“Asian workers are eager to come to Romania because wages here are three to four times higher than in their home countries. Moreover, they also bring a financial advantage to the Romanian state: throughout the duration of the contract, employers pay contributions for them to the Romanian pension system, whose budget has been under pressure in recent years.”

explained Romulus Badea, Partner at Soter & Partners

The very high demand for Asian workers makes some local intermediaries try to approach Romanian companies directly to offer workforce, but accepting such offers can be risky.

“If a construction company wants to make sure workers are carefully selected and that the entire documentation required for them to come and work in Romania is handled according to the law, it is essential to collaborate with specialised firms. We always provide a solid system of guarantees to our partners, first of all by travelling to the countries of origin for detailed practical tests. Contracts are signed for two years and we always replace workers who, for whatever reason, do not remain in activity for the whole period, so that project deadlines are not endangered.”

explained Romulus Badea, Partner at Soter & Partners

Because Romanian workers are attracted by the significantly higher salaries in Western Europe, infrastructure projects risk being blocked due to labour shortages – a recent example being the Sibiu–Pitești motorway section.

The 434 kilometres of motorway included in the PNRR have 2026 as the final implementation deadline, and the total budget allocated to the transport component amounts to EUR 7.62 billion.