Hungary
Background information on industrial relations in Hungary
- 26 Sep 2011
Hungary: Representativeness of the European social partner organisations: Commerce – HungaryHungary’s commerce sector is the second largest in the economy in terms of both number of enterprises and number of employees. Despite this, the overall number of companies in commerce declined drastically in recent years. Over 98% of all companies in the sector are small or medium-sized enterprises. There is one sectoral union, the Trade Union of Commerce Workers (KASZ), and four employers’ organisations. There is no sector-wide collective bargaining agreement and few employees in either wholesale or retail are covered by collective agreements at either company or multi-employer level.
- 02 Sep 2011
Hungary: Government to stop consulting unions on minimum wageThe Hungarian government will no longer have to consult unions over setting the minimum wage as of 1 January 2012. It is changing the tripartite interest reconciliation system, with a new body, the National Economic and Social Council (NGTT) replacing the National Interest Reconciliation Council (OÉT). The NGTT will include representatives of employers, workers, chambers of commerce, and churches, but it can only propose changes. Unions and employers are against this.
- 11 Aug 2011
Hungary: Deregulation plan to boost jobsThe Hungarian government is attempting to introduce incentives to increase the employment rate and help both state and companies save money. Specifically, say some unions, the government wants to cut red tape and the costs of hiring and dismissing workers, thus putting employers’ interests and state budgets before the rights of workers. The government published a new draft of the Hungarian Convergence Széll Kálmán Programme on 15 April 2011, provoking widespread discussion.
- 01 Aug 2011
Hungary: Hungary: The representativeness of trade unions and employer associations in the banking sectorIn 2008 Hungary’s financial sector was composed of 532 companies employing 1.6% of all workers in the country. It is one of the most profitable economic sectors, although the financial crisis reduced its profits and number of employees. There are two main types of company in the banking sector: the cooperative banks, operating mainly in smaller towns, and the big multinational banks. The former are covered by the trade union KASZ, while the latter are covered by BBDSZ. Unionisation levels of both trade unions are low. The importance of the sectoral social dialogue is very low and there are only company-level agreements in the sector.
- 01 Aug 2011
Hungary: Hungary EIRO CAR on ‘Helping young workers during the crisis: contributions by social partners and public authorities.’he difficult situation of young people should not be seen solely as the effect of global economic downturn started in 2008, however their situation have been decayed due to the crisis. Young people face strong structural unemployment on the Hungarian labour market, due to the failures of the education system. Lots of well-qualified, skilled young workers are missing in the industrial sector, although a high number of high-qualified people are coming out from the tertiary education and step into the labour market as unemployed every year. Regarding youth, the renewal of education system is one of the most important challenges for the upcoming governmental period and the social dialogue. Even though there is no autonomous youth policy in the social partners’ agenda.
- 29 Jul 2011
Hungary: Representativeness of the European social partner organisations: Education sector – HungaryThe 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 education 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.
- 08 Jul 2011
Hungary: Extension of governmental power in HungaryFollowing the election of Hungary’s new government in May 2010, it submitted 70 bills for parliamentary discussion and approval in the autumn session, of which the majority seemed likely to extend the influence of government on civil society and social partners. Such bills include changes to media law, pension schemes and the pay and working conditions of public servants. Social partners and opposition parties have been publicly very critical about these new laws.
- 06 Jul 2011
Hungary: Wage and Tax Monitoring Committee set upIn February 2011, the Hungarian government established a Wage and Tax Monitoring Committee, to ensure public and private companies actually pay a 4%–6% gross wage increase agreed by the National Interest Coordination Council at the end of 2010. It believes many workers have not yet received the increase. Social partners agree with the wage increase on principle, but say such government pressure is unnecessary and other factors, such as job security, must be considered.
- 15 Jun 2011
Hungary: Hungary EIRO CAR on SMEs in the crisis: Employment, Industrial Relations and Local PartnershipIn Hungary during the past 20 years there were no political and economical strategies, priorities created to support SMEs. However the number of SMEs (with main focus on the micro and small businesses) increased till the global crises. The study describes the impact of the crises on the Hungarian SMEs and highlights the changes of the employment in SMEs since 2008. Nevertheless, the questions how these tendencies shall be improved and which effects the small number of recent political measures have remain open for the moment.
- 15 Jun 2011
Hungary: Hungary: Representativeness study of the European social partners organisations – Public administration sectorWhile the level of employment in Hungary’s public administration sector is stagnating, the sector still provides the greatest employment security, despite the economic crisis. Collective bargaining in the sector is unusual because legislation permits collective agreements to be concluded with respect to very small numbers of employees. There are many trade unions in the sector, usually covering a single segment of public administration (e.g. the military, law enforcement, water management, and so on). In the central public administration the most dominant employee organisation is the Federation of Hungarian Public Service Employees Unions (KSZSZ), which has 30 members.
- 02 May 2011
Hungary: Hungarian motor sector boosts economyThe economic crisis hit Hungary’s motor industry hard, but in 2010 the sector began to recover. Most car manufacturers and suppliers have announced that they are expanding and taking on workers. In addition, Daimler-Mercedes has decided to open a plant in Hungary, which is likely to benefit suppliers in the sector. The trade unions have mixed experiences with the management of multinational car firms. Some have extremely good relations with such firms, while others are not allowed on company premises.
- 15 Mar 2011
Hungary: Industrial disputes at Tesco Hungary2010 has been a successful year for Tesco Hungary’s business results, but the company has had to deal with a number of industrial disputes. The Independent Union of Retail Workers (KDFSZ) intends to ask the labour courts to make Tesco pay the same wages in all its stores. The National Labour Inspectorate is investigating KDFSZ’s complaints that Tesco cashiers are not paid the minimum wage, while the company says cashiers are not skilled and so are not entitled to the minimum wage.
- 14 Feb 2011
Hungary: Hungary: Industrial Relations in the Health Care Sector (in particular the situation of nurses and care workers)In Hungary the health care system has been “under construction” for the last 15-20 years. Mainly the nurses and the care workers are suffering from this transformation process. Many of them have lost work their posts, and the average wage has been stagnating at the prevailing subsistence level. The prestige of the job is very low within the sector, and first contacts with clients, normally made by nurses and care workers significantly affect the public view on the entire sector. Looking at governmental and other public positions one is inclined to argue that care work seems to be specifically low valued. Recent policies do not prioritize nor aim to regulate the employment and working conditions of nurses, midwifes, skilled and unskilled care workers.Therefore our study can describe only general framework actions, bargaining and social-dialogue of the entire health care sector.
- 19 Jan 2011
Hungary: Hungary: EIRO CAR on “The effect of the Information and Consultation Directive on Industrial Relations in the EU Member States five years after its transpositionThe introduction of I&C mechanisms happened in 1992 prior the accession to the EU in 2004, when Works Councils at company’s level were introduced. Those mechanisms have strong references in the German system of I&C (yet, without or only with very weak co-determination rights). Hungary joined the EU without any need to make substantial changes in I&C. The impact of the I&C directive of 2004 is low, but it is also difficult to measure the impact of the I&C directive on the I&C practice in Hungary since 2005, as there is no record of the number of Works Councils nor the quality of their work. The most recent data stems from the findings of a survey run in 2004, and the experiences of the 132-members of the Association College Works Council operated by ÉTOSZ. An ambivalent and competitive relation between Unions and Works Council, which is due to historical reasons hinders that Unions at national and sectoral level show an interest in the strengthening of I&C rights off Works Councils at company’s level and also impedes the collection of meaningful data about the quantity and quality of I&C in Hungary.
- 11 Jan 2011
Hungary: Hungary: EIRO Annual Review– 2009This record reviews the main industrial relations developments in Hungary during 2009