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Hungary

Background information on industrial relations in Hungary

• 19 Dec 2008
  Hungary: Hungary: Temporary agency work and collective bargaining in the EU

  The volume of temporary agency work in Hungary is about 2.4% of the labour force, however, in terms of full-time equivalent it makes up only 0.9% of the working hours of the employed. Although recent amendments of the Labour Code have introduced the equal remuneration principle and eliminated the possibility of some other abuses, there is no other serious constraint as to the usage of agencies. Collective agreements do not regulate temporary agency work, neither at sectoral level, nor at user/agency company level, trade unions are not able to organise agency workers.

• 11 Dec 2008
  Hungary: Industrial relations in the public sector ─ Hungary

  This report presents an overview of industrial relations in the central government and public sector in Hungary.

• 08 Dec 2008
  Hungary: Spotlight on four years of sectoral social dialogue

  The fourth anniversary of the tripartite agreement establishing the rules of sectoral social dialogue committees was marked this year by a conference and publication outlining the development of these committees. This article provides a synopsis of the committees’ development, including the background to their establishment, their main activities to date and any weaknesses which have been identified. Altogether, some 36 such committees have been established in Hungary to date.

• 08 Dec 2008
  Hungary: Representativeness of the European social partner organisations: Railways 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 railways 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 on their role in collective bargaining. The study is divided into two parts: the first part deals with railway transport operation, based on research carried out in 2006; the second part focuses on rail infrastructure, based on research completed in 2007.

• 14 Nov 2008
  Hungary: Tensions continue over restructuring in public sector

  This article follows on from the recently published study, ‘Industrial relations in the public sector – Hungary’, by reviewing the sector’s major changes since 2005. These include the recent agreement between the government and the trade unions on wage adjustments, changes in wages and employment, as well as the attempts to implement a new performance evaluation system in the public sector. Reforms were considered necessary due to a substantial state budget deficit.

• 14 Nov 2008
  Hungary: Trade unions reject new economic consultative forum

  In July 2008, the government established the Economic Conciliation Forum, envisaged as a consultative body dedicated to improving the competitiveness of the Hungarian economy. While many of the actors in the business community welcomed its establishment, trade unions rejected it from the outset, claiming that their representation in the body was unsatisfactory and that it challenged the function of the National Interest Reconciliation Council.

• 29 Sep 2008
  Hungary: Court revokes law on working time reduction in hazardous workplaces

  In July 2008, the Constitutional Court ruling to revoke the ministerial decree on the reduction of working time to a 36-hour week in hazardous workplaces came into effect. The court ruling affects at least 20,000 workers mainly in the metallurgy, chemicals and nuclear industries. The ruling was originally issued in February, giving legislators time to lay down a new regulation. Despite the four-month interval and the trade unions’ widely expressed concerns about a resulting workforce reduction, the government failed to devise a regulation to this effect.

• 23 Sep 2008
  Hungary: Hungary: Industrial relations developments in Europe 2007

  As an impact of the introduction of austerity measures the previous year, 2007 was marked by growing unpopularity of the government and constant political tensions between the governing coalition and the opposition. Although real wages declined by almost by 6%, national level social dialogue and collective bargaining returned to normal during the year. In the autumn the government’s bill on health-care reform met with widespread rejection, which escalated into a series of demonstrations and strikes. Although the LIGA confederation’s call for general strike did not reach its goal, eventually its radical political stand made it to the best-known union and organisationally strengthened it.

• 22 Sep 2008
  Hungary: Warning strike and lock-out at Paks Nuclear Power Plant

  A two-hour warning strike was staged in May 2008 at Hungary’s only nuclear power plant, near the central town of Paks. The strike was held by employees of Dekoten, a company to which the power plant had outsourced cleaning and gardening activities, and was attributed to the failure to conclude a new collective agreement. Following the strike, negotiations continued with the involvement of a professional mediator, and a new agreement was expected in September 2008.

• 08 Sep 2008
  Hungary: New collective agreement at MALÉV Hungarian Airlines

  Following almost two months of negotiations, management at MALÉV Airlines and five trade unions concluded a new collective agreement at the end of March 2008. The new deal grants the company more flexibility in work schedules and offers employees an updated benefit system. Both parties to the agreement welcomed the compromise; some union representatives, however, believe that their main success was preserving the existence of a collective agreement at MALÉV.

• 07 Aug 2008
  Hungary: Hungary: representativeness of the European social partner organisations – Sea and coastal water transport

  Hungarian sea and coastal transport has been of little consequence since the end of the second world war and it has basically ceased to exist since the beginning of the 1990s, hence the sector is not present in the country's economy today. The core activities of Hungarian Shipping Company (Magyar HajózásiRészvénytársaság, MAHART), which was a state company operating water transport services, today include river navigation and tourism.

• 17 Jul 2008
  Hungary: Trade unions oppose new rules to impose litigation costs on employees

  New rules introduced earlier in 2008 relating to the payment of litigation costs in labour lawsuits will mean that the defeated party will have to repay duties and other related costs which were paid in advance by the state. This is in addition to paying the costs incurred by the adverse party. Trade unions are outraged by the new rule and have immediately initiated talks at the National Interest Reconciliation Council and with the prime minister, so far without success.

• 16 Jul 2008
  Hungary: Representativeness of the European social partner organisations: Post and courier services – 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 post and courier services 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 on their role in collective bargaining.

• 14 Jul 2008
  Hungary: Representativeness of the European social partner organisations: Manufacture of sugar – 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 sugar manufacturing 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 on their role in collective bargaining.

• 26 Jun 2008
  Hungary: Government performs unexpected U-turn on health reform bill

  In May 2008, the governing Hungarian Socialist Party (MSZP) backed away from the widely criticised healthcare reform law. MSZP has been acting as the country’s minority government since the recent break-up with its junior coalition partner, the Alliance of Free Democrats, which had initially proposed the reform in 2006. Despite having voted twice in favour of the bill, MSZP made a complete U-turn and joined forces with the opposition parties to revoke the bill.

• 19 May 2008
  Hungary: Majority vote ‘yes’ in referendum to abolish medical and higher education fees

  A referendum was held in March 2008 on whether to abolish doctor visit and hospitalisation fees in the health service, as well as tuition fees in higher education. The referendum resulted in an overwhelming victory for the opposition party, the Alliance of Young Democrats, which initiated the referendum against the government’s plan to introduce co-payment schemes. Thus, the outcome of the referendum represented a devastating failure for the governing socialist-liberal coalition.

• 19 May 2008
  Hungary: Strikes at Budapest Transport Company in bid to protect services and jobs

  Public transport in Budapest came to a virtual standstill on two occasions in April 2008, when trade unions at the Budapest Transport Company held general strikes. Although the strikes were mainly called in protest against planned service cuts and subsequent job losses, they also sought to draw attention to the company’s growing debts and uncertain future. On 7 April, railway workers also ‘coincidentally’ organised a strike, further complicating the situation.

• 09 May 2008
  Hungary: Changes to working time provisions in Labour Code

  After years of non-compliance of Hungarian companies with European Court of Justice rulings on working time, the government brought in legislation to modify several working time provisions of the country’s Labour Code. The provisions in Act LXXIII of 2007 include on-call work, the duration of working time breaks, the mandatory duration of the reference period, and the annual maximum amount of overtime. The social partners’ reactions to the new provisions have been mixed.

• 21 Apr 2008
  Hungary: Conference reviews role of Economic and Social Council

  In January 2008, following the third anniversary of the establishment of the Economic and Social Council, a conference reviewed how the council has functioned so far, assessed its merits and demerits, and made recommendations for improving its legal background and policy context. Earlier a smaller international workshop, attended by experts from the International Labour Organization, also discussed the Hungarian social dialogue system in a European perspective.

• 21 Apr 2008
  Hungary: MALÉV Airlines to terminate collective agreement

  Having failed to reach a consensus with trade unions, MALÉV Hungarian Airlines decided to terminate its collective agreement. The company intends to replace the current agreement with one which ensures flexible terms and conditions of employment and adapts more easily to market changes. Trade unions at MALÉV were surprised to learn about the company’s decision from the media. The agreement is still in force until the end of May 2008, which may give the parties involved enough time to re-negotiate its terms.

• 07 Apr 2008
  Hungary: Government suspends subsidies for Hankook due to labour law abuses

  Following a series of trade union complaints and company fines imposed by the labour inspectorate, in November 2007 the government suspended the transfer of a training subsidy of HUF 143 million (€558,166) to the Korean tyre manufacturer Hankook. This is the first serious government sanction imposed under the law on ‘orderly labour relations’, in force since January 2006. This law ties subsidies and participation in public procurement tenders to good labour practices among employers.

• 01 Apr 2008
  Hungary: Cross-border cooperation between Hungarian and Austrian railway unions

  Three railway trade unions from Hungary and Austria, as well as the works councils of three railway companies from the two countries, have concluded an agreement on guidelines for cooperation and negotiations after the recent takeover of MÁV Cargo by Rail Cargo Austria and Győr-Sopron-Ebenfurt Railway. The trade union cross-border cooperation aims to reduce wage differences, enhance employee benefits, strengthen relations and improve health and safety.

• 24 Mar 2008
  Hungary: Health insurance bill passed despite nationwide protest strikes

  As part of a larger reform package launched in 2006, the Hungarian government has embarked on measures to privatise part of the health insurance system. The proposed health insurance bill, criticised by opposition parties and trade unions, led to a wave of nationwide strikes in late 2007, with professional associations and civil groups staging national-level demonstrations and street rallies. However, the bill was eventually passed, with only minor changes, in February 2008.

• 24 Mar 2008
  Hungary: National strike at railway company over pay

  The Free Trade Union of Railway Workers launched a nationwide strike after several rounds of wage negotiations failed with the Hungarian Railway Company (MÁV). The trade union is demanding a 10% pay increase for employees of MÁV’s outsourced companies, in addition to a bonus of HUF 250,000 to be paid to all railway workers after last year’s privatisation of MÁV Cargo.

• 24 Mar 2008
  Hungary: Coalition parties divided over controversial health insurance reform

  The recently launched government reform has opened the gateway for private investment in Hungary’s health insurance system. Contrary to expectations, and despite strong opposition from professional associations and trade unions in the healthcare sector, the reform, which was proposed by the junior coalition partner, the Alliance of Free Democrats, was passed by the parliament.

• 24 Mar 2008
  Hungary: Wage increase agreed after protracted negotiations

  In December 2007, the National Interest Reconciliation Council finally reached agreement on the annual wage increase for 2008. The wage increase is set at 5%–7.5% as a recommendation for lower-level wage settings. Initially, both employers and employees rejected the government’s 4.8% wage increase proposal, while negotiations were further interrupted following the wave of demonstrations and strikes that took place in December.

• 04 Mar 2008
  Hungary: Agreement signed on pay rise in public sector

  In December 2007, the government and public sector trade unions reached agreement on an average wage rise of 5% for 2008. In effect, this means that there will be no real wage increase in the sector, as the government forecasts annual average inflation of 4.8% for 2008. The agreement can be viewed as a bargaining success for the government, as – unlike previous years – it was concluded before the lengthy negotiations for the private sector agreement ended.

• 18 Feb 2008
  Hungary: General Electric employees protest at planned relocation

  General Electric is planning to cease production of certain types of lamps at its Vác and Kisvárda manufacturing plants due to increased production costs. The Independent Trade Union of Tungsram Workers stated that about 600–700 employees might lose their jobs in 2008 as a result of the company’s plans to relocate production to China. In protest, the union held a demonstration in front of the company’s headquarters in Budapest and staged a 30-minute warning strike at the Vác plant.

• 04 Feb 2008
  Hungary: Rail unions hold warning strikes in protest at closure of railway lines

  In an attempt to reduce costs, the government is continuing to close underutilised rural railway lines. The trade unions representing railway workers strongly oppose such a reduction of services and held two warning strikes to demonstrate their position on the matter. Apart from saving jobs, the unions also draw attention to the general interests of underdeveloped communities served by rural railways. The industrial action was supported by the mayors of the localities concerned.

• 04 Feb 2008
  Hungary: Wage agreement at Hungarian Post averts planned strike action

  An agreement on wage developments for 2008 between the biggest state-owned company, Hungarian Post, and the trade unions was finalised the day before strike action was due to take place. The government used the agreement reached at Hungarian Post to facilitate consensus among social partners at the National Interest Reconciliation Council on recommendations for annual wage increases; it also served as a benchmark for national-level negotiations.

• 04 Feb 2008
  Hungary: Telework in Hungary

  Currently, the proportion of teleworkers in Hungary is modest, and only slowly increasing. Hungary has implemented the EU framework agreement on telework – concluded by the European social partners in 2002 – through legislation pertaining to the employment relationship; however, the majority of teleworkers are self-employed. Over the next two years, the government intends to offer EU-funded subsidies to encourage job creation in telework.

• 01 Feb 2008
  Hungary: Representativeness of the social partners: Gas 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 gas 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 on their role in collective bargaining.

• 14 Jan 2008
  Hungary: Union merger in electricity sector strengthens confederation position

  The major trade union federation in the electricity sector has joined the Democratic League of Independent Trade Unions (LIGA), leaving the Confederation of Autonomous Trade Unions. This move further strengthens LIGA, which is currently one of the most dynamic trade union confederations in Hungary. Such an affiliation change may encourage confederations to improve their efficiency and provide better services to their members.