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Hungary

Background information on industrial relations in Hungary

• 20 Dec 2007
  Hungary: Impact of the working time directive on collective bargaining in the road transport sector — Hungary

  This is theHungarian contribution to the Comparative analytical report on the Impact of the working time directive for the road transport sector on collective bargaining

• 10 Dec 2007
  Hungary: Government launches support scheme for redundant railway employees

  In 2003, the Hungarian government approved a 20% reduction in the workforce of Hungarian State Railways (MÁV) to be implemented by the end of 2006. Following trade union petitioning and lengthy negotiations, in 2005 MÁV established the New Chance Foundation to provide counselling and support for employees laid off as a result of the restructuring. So far, some 700 workers have registered for the programme and a third of these have found a new job.

• 03 Dec 2007
  Hungary: Socially responsible practices in SMEs

  A study investigated the awareness and practice of corporate social responsibility (CSR) among small and medium-sized enterprises (SMEs) in Hungary. The research found that product quality is the primary focus of responsible and ethical practices. However, it concluded that local stakeholders, competitors, customers or even family members often discourage owner-managers of SMEs from committing extra time, money and energy to CSR practices.

• 26 Nov 2007
  Hungary: Pay dispute at Budapest public transport company

  Tensions were heightened between trade unions and management at the Budapest Transport Company over a disagreement concerning wage increases. The negotiations took place against a backdrop of ongoing substantial financial losses at the company and a management plan to reorganise working time, combined with government tax increases and higher than expected inflation. The conflict ended with an agreement on additional pay increases for 2007–2008.

• 26 Nov 2007
  Hungary: Proposed reform of pension system to result in lower pensions

  From January 2008, the value of pensions is set to decrease compared with previous years. The allowance will be based on income earned from 1 January 1988 up to the time of retirement. Some future pensioners may receive 5% less than would have applied under the current rules; for others, the decrease may be as much as 15%. The government also plans to reform the disability pension system and to modify the official retirement age, limiting early retirement options.

• 15 Nov 2007
  Hungary: Industrial relations in the postal sector — Hungary

  This is the Hungarian contribution to the comparative analytical report on Industrial relations in the postal sector

• 09 Oct 2007
  Hungary: Industrial conflict at new Hankook tyre factory

  At the recently opened Hungarian site of the Korean tyre manufacturer Hankook, employees report irregularities in payroll calculation, overtime hours and weekend work. According to the Federation of Trade Unions of the Chemical, Energy and Allied Workers, the company is ignoring international labour standards and intimidating local trade union representatives so that the union is forced to work in secret and employees are afraid to disclose their membership.

• 01 Oct 2007
  Hungary: Economically dependent workers in Hungary

  The issue of economically dependent work is not yet officially recognised in Hungary, apart from special legal regulation for commercial agents. Nevertheless, the use of ‘bogus’ or false civil law contracts instead of standard employment contracts is common for various reasons, not least as employers try to evade high taxes. It may be assumed that a large proportion of workers in such situations fall into the category of economically dependent workers.

• 01 Oct 2007
  Hungary: Dispute at Budapest Airport resolved after strike

  The annual wage negotiations in early 2007 generated further conflict between companies and trade unions operating at Budapest Ferihegy Airport. The dispute escalated into strike action against two employers operating at the airport, causing a considerable number of flight delays. The conflicts were eventually resolved with the involvement of the Labour Mediation and Arbitration Service and agreements were finally reached in May and June 2007.

• 01 Oct 2007
  Hungary: Austerity package leads to drop in real wages

  The Hungarian Central Statistical Office has reported a decrease in real wages in the first five months of 2007. Gross average income rose by 7.4%, while net average income increased by 1.2%. When adjusted for inflation, this corresponds to a 6.8% decline compared with real wages a year ago. The drop is due mainly to the 2006 austerity package; however, state measures to combat the undeclared economy may also have had an impact on pay developments.

• 01 Oct 2007
  Hungary: Representativeness of the social partners: Agricultural sector – Hungary

  The aim of this representativeness study is to identify the respective national and supranational actors (i.e. trade unions and employer organisations) in the field of industrial relations in the agriculture sector in Hungary. In order to determine their relative importance in the sector’s industrial relations, this study will, in particular, focus on their representational quality as well as their role in collective bargaining.

• 20 Aug 2007
  Hungary: Government maintains cut-price rate for electricity sector employees

  In June 2007, representatives of the Ministry of Economy and Transport, employer organisations and trade unions of the electricity sector signed an agreement maintaining the preferential price for employees in the sector after liberalisation of the industry. This followed a series of negotiations and strike action earlier in the year. The agreement defines those entitled to the discounted price and under what conditions, and specifies who covers the cost differential.

• 20 Aug 2007
  Hungary: Parliament passes new legislation on annual leave

  Following a decision by the Constitutional Court, the parliament has passed new legislation on paid annual leave which is more favourable to employees. The new provisions entitle workers to request a maximum of three days’ emergency annual leave without giving advance notice. They also set out the rules under which employers can transfer employees’ annual leave to the following year.

• 24 Jul 2007
  Hungary: Employee financial participation in the New Member States —Hungary

  This report describes the current situation in relation to employee financial participation (EFP) in Hungary.

• 26 Jun 2007
  Hungary: Annual wage agreement in public sector finally reached

  On 19 February 2007, major public sector trade unions and the government reached a wage agreement for 2007. Bargaining rounds for the agreement proved to be extremely difficult due to the government’s austere reform measures, which envisage cuts in the budget, services and staff. Tensions were heightened following rallies and calls for strike action by radical trade unions. The impasse in wage bargaining also led to the establishment of a strike committee.

• 13 Jun 2007
  Hungary: Industrial relations developments 2006– Hungary

  This is the Hungarian contribution to the annual review of industrial relations developments 2006.

• 28 May 2007
  Hungary: Last-minute agreement on annual wage recommendation for 2007

  As a consequence of the austerity package introduced by the government last year, this year’s national-level wage bargaining round was extremely protracted, with an agreement only being concluded at the end of January 2007. A series of eight sessions of the National Interest Reconciliation Council on the wage negotiations took place before an agreement was finally reached.

• 18 May 2007
  Hungary: Gender and career development — Hungary

  This comparative study examines the issue of gender and career development and explores the continuing barriers to achieving equality of opportunity in this area in Hungary.

• 18 May 2007
  Hungary: Representativeness of the social partners: Telecommunications sector – HUNGARY

  This sectoral study examines the representativeness of the main industrial relations actors in the telecommunications sector in Hungary as of May 2006.

• 27 Apr 2007
  Hungary: Chamber of Physicians object to government law to ban compulsory membership

  In the autumn of 2006, the Hungarian parliament passed new legislation on professional chambers in the healthcare sector, which came into effect from 1 April 2007. While the aim of this regulation is to weaken professional chambers in general by terminating compulsory membership, it is primarily targeted at the Hungarian Chamber of Physicians. The latter has been criticised by the socialist-liberal government for its compulsory membership and opposition to reforms. In response, the Chamber is strengthening its position in relation to interest representation.

• 02 Apr 2007
  Hungary: Reorganisation in Social Affairs Ministry aimed at greater efficiency

  Further to the merger of the ministries in charge of social affairs, equal opportunities and employment policy, which took place in mid 2006, a new wave of reorganisation is underway in different service units affiliated to the Ministry of Social Affairs and Labour. Among other units, the Public Employment Service, the Labour Inspectorate, the Sectoral Social Dialogue Centre, and the Mediation and Arbitration Service are currently undergoing major organisational changes.

• 02 Apr 2007
  Hungary: Unions protest over plan to cut employee benefits in electricity and railway sectors

  Trade unions in the electricity sector and at the Hungarian State Railways called strikes for the beginning of February 2007 in response to the government’s attempts to eliminate long established employee benefits. The Ministry of Economy and Transport took issue with the special preferential price of electricity for employees and pensioners in the electricity sector; this benefit is also endangered by the liberalisation of the industry in July 2007. Moreover, the separate healthcare plan for railway employees may be abolished in the government’s radical reform of the entire healthcare system. A two-hour warning strike took place in the electricity sector on 6 February but the planned warning strike in the railways sector has been deferred pending the outcome of further negotiations.

• 12 Mar 2007
  Hungary: President refers draft laws on social dialogue to Constitutional Court

  The President of the Hungarian Republic, László Sólyom, has declined to sign two new laws passed by parliament on the National Interest Reconciliation Council (OÉT) and on the sectoral social dialogue committees. Instead, the president has submitted the draft laws to the Constitutional Court for a review of their constitutionality. Among the main concerns of the president is OÉT’s legitimacy to exercise public power functions.

• 08 Mar 2007
  Hungary: Renewal and extension of collective agreement in bakery sector

  In May 2006, employers terminated the previous collective agreement in the bakery sector. After several rounds of negotiations, the social partners agreed on a renewed sectoral agreement in September 2006 and jointly requested its extension. As part of the new agreement, various bonuses and allowances for employees are curtailed, while the trade unions managed to maintain the employers’ support for the extension procedure.

• 26 Feb 2007
  Hungary: EU enlargement fuels concerns over free movement of workers

  The latest accession of the two eastern European countries, Romania and Bulgaria, to the EU on 1 January 2007 has triggered new fears of migration from less developed to more developed Member States. Prior to the 2004 enlargement of the EU, Hungary had actively argued against limiting the free movement of labour from the new to the older Member States. However, during the recent wave of enlargement, Hungary and Malta were the only countries of the ten new Member States that joined in 2004 to set restrictions on the gradual opening up of their labour markets.