- Observatory: EurWORK
- Topic:
- Collective bargaining,
- Social partners,
- Participation at work,
- Social dialog,
- Employee representation,
- Arbejdsmarkedsrelationer,
- Published on: 26 januar 2014
About
In Hungary the electricity sector is quite well organised. The Trade Union Federation of Electricity workers’ Unions (EVDSZ) and the Mining and Energy Industry Workers’ Union (BDSZ) claim to cover all employees in the sector. There is only one representative employer organisation, the Alliance of Electricity Sectors Employers’ Associations (VMTSZ). The collective agreement is extended, thus covering the entire sector. The wage agreements are negotiated yearly and also extended, but only for those companies which participate in social dialogue as members of the employer organisation. The government introduced a number of crisis-related measures between 2011 and 2013 which have generated losses in profit for the mainly multinational companies active in the sector.
Sectoral properties
Sectoral coverage
This representativeness study covers companies and employees in the electricity sector, as defined by NACE Rev. 2 code 35.1:
35.1 Electric power generation, transmission and distribution
35.11 Production of electricity
35.12 Transmission of electricity
35.13 Distribution of electricity
35.14 Trade of electricity
Development of sectoral employment and companies
|
2001 |
2011 |
|
|---|---|---|
| Number of companies in the sector (including one-person companies and self-employed) |
119 (Nace 401) |
894 (Nace 35.1) |
| Comment |
Registered business entities |
Registered business entities |
| Source of company data | ||
| Aggregate employment |
28,974 (Nace 401) |
14,352 (Nace 35.1) |
| Male employment |
No data available |
No data available |
| Female employment |
No data available |
No data available |
| Share of sectoral employment as a % of total employment in the economy |
1.1% |
0.5% |
| Source of employment figures | ||
| Aggregate employees |
28,968 (Nace 401) |
14,147 (Nace 35.1) |
| Male employees |
No data available |
No data available |
| Female employees |
No data available |
No data available |
| Share of sectoral employees as a % of total employees in the economy |
1.1% |
0.5% |
| Source of employee figures | ||
| Comment |
2. Overview of the industrial relations landscape in the sector
In Hungary the electricity sector is quite well organised. The trade union Federation of Electricity workers’ Unions (EVDSZ) and the Mining and Energy Industry Workers’ Union (BDSZ) claims to cover all employees in the sector; however the employees in the renewable energy industries are not really organised yet. Even though the government has announced a strategy for strengthening the renewable part of the energy supply, the unions have made hardly any effort in organising those new parts of the sector.
The collective agreement is extended, thus covering the entire sector. The wage agreements are negotiated yearly and also extended, but only for those companies which participate in social dialogue as members of the employer organisation. During bilateral consultations only employment-related issues are discussed, not professional ones.
The economic crisis led to the government increasing taxes for electricity providers. They were first increased in 2011, to 8% of pre-tax profit for the ‘rich’ suppliers of energy and other strategic services, and in 2013 this rate was increased to 16%. This led to reduced profit for the main (multinational) suppliers. They wrote an open letter of protest in December 2011 to José Manuel Barroso, President of the EU Commission.
In December 2012 the government introduced a so-called ‘overhead reduction’ of 10% for public utility costs of housing, which affects again the profit expectations of energy sector and might lead to job losses and wage developments.
3. The sector’s trade unions and employer associations
This report includes detailed information on the following trade unions and employer associations:
(i) trade unions (or employees’ interest organisations) and employer organisations (or business associations) which are affiliated to the sector-related European Union Federation(s) or the sector-related European Employer/Business Federation(s) and represent members in the sector
The sector-related European employee organisations are:
- IndustriAll Europa;
- European Federation of Public Service Unions (EPSU).
The sector-related European employer organisations are:
- The union of the electricity industry (EURELECTRIC).
(ii) trade unions and employer organisations which are party to sector-related collective bargaining and represent members in the sector.
This report does not include detailed information on the following organisations, because they fall outside the remit of the study:
iii) Affiliates to EU-level sectoral social partners, but without members in the sector. These are the affiliates of EPSU and IndustriAll Europa that have members in other sectors but not in the electricity sector. Use these weblinks for a full list of the IndustriAll affiliates and EPSU affiliates.
iv) Organisations which are involved in sector-related collective bargaining, but do not represent members in the sector.
v) Organisations which represent members in the sector, but are not involved in sector-related collective bargaining, and are not members of EU-level sectoral social-partner organisations.
3a. Please list all the organisations which can be related to the study in the following overview table
| Organisation abbreviation | Sector-related (members in the sector) | Member of a sector-related European organisation | Involved in sector related CB | Fact-sheet included | Source of information |
|---|---|---|---|---|---|
|
Federation of Electricity workers’ Unions (EVDSZ |
Yes |
Yes |
Yes |
Yes |
Rezső Gál, president of EVDSZ, |
|
Mining and Energy Industry Workers’ Union (BDSZ) |
Yes |
Yes |
Yes |
Yes |
Ferenc Rabi, president of BDSZ |
|
Alliance of Electricity Sectors Employers’ Associations (VMTSZ) |
Yes |
Yes (according to Eurofound sources,) No (according to VMTSZ in February 2013) |
Yes |
Yes |
Benedek FLUCK, presidenr of VMTSZ, |
|
VKDSZ |
NO |
Yes |
No |
NO |
|
|
HVDSZ |
No |
Yes |
No |
No |
|
|
EMT |
Yes |
The Annex to this questionnaire provides the list of all the organisations which are members of the sector-related European organisations, broken down by country.
4. Collective bargaining in the electricity sector
4.1. Are employees in the sector as defined in Section 1 above and in Table 1 covered by collective bargaining?
Yes
4.2. If yes, please consider the five main relevant* collective agreements (single-employer and multi-employer agreements) valid in 2012 in the electricity sector and indicate their levels, the name of the agreements, respective coverage in terms of sectors/activities, the bargaining parties to the agreement and the numbers of employees covered within the electricity sector (also estimate):
No data supplied
5. The system of collective bargaining
5.1. Estimate the sector’s rate of collective bargaining coverage (i.e. the ratio of the number of employees covered by any kind of collective agreement to the total number of employees in the sector).
There is a 99% coverage, because of the limitations of social partner organisations.
5.2. Estimate the relative importance of multi-employer agreements and of single-employer agreements as a percentage of the total number of employees covered.
The sectoral agreement is the most important. As there is only a limited number of employers on the market, the terms of the multi employer agreements are nearly the same as those in the sectoral agreement.
5.2.1. Is there a practice of extending multi-employer agreements to employers who are not affiliated to the signatory employer association/s?
There is an extended collective agreement, renewed in 2012, covering all employees (100%) in the sector and its subsectors. There is also a wage agreement which is negotiated yearly and signed by the social partners. This agreement has been extended throughout the sector annually; however the administrative burden, plus the changing administrative and legal environment meant that it could not be extended to all employees in the sector in 2011. It now covers only the members of social partner organisations.
5.2.2. If there is a practice of extending collective agreements targeting employers, is this practice pervasive or rather limited and exceptional?
No, it happens regularly.
6. Formulation and implementation of sector-specific public policies
6.1. Do tripartite bodies dealing with sector-specific issues exist? If yes, please indicate their domain of activity (for instance, health and safety, equal opportunities, labour market, social security and pensions etc.), their origin (agreement/statutory) and the interest organisations having representatives in them:
|
Name of the body and scope of activity |
Bipartite/tripartite |
Origin: agreement/statutory |
Trade unions having representatives (reps) |
Employer associations having reps. |
|---|---|---|---|---|
|
Sub-Sectoral Social Dialogue Committee (VAÁPB) |
Bipartite, but secretary is paid by the Ministry. |
Resolution nr. 92-3/19-5/2010-ÁRMB, from 23 March 2010 |
Federation of Electricity workers’ Unions (EVDSZ) and the Mining and Energy Industry Workers’ Union (BDSZ) |
Alliance of Electricity Sectors Employers’ Associations (VMTSZ) |
Sector-specific policies specifically target and affect the sector under consideration.
As the employers are in competition they are neither allowed (by their status agreement) nor willing to discuss professional issues within the VAÁPB. In the VAÀPB only employment-related issues such as collective agreements, wage agreements or strike issues can be negotiated.
7. Data on the trade unions
|
V.D.Sz.Sz. (EVDSZ) |
|
|---|---|
|
The Trade Union Federation of Electricity Workers’ Unions |
|
|
Egyesült Villamosenergia-ipari Dolgozók Szakszervezeti Szövetsége |
|
|
The union’s domain |
|
|
According to its domain, does the union potentially cover the entire electricity sector, including all of the sub-activities as a whole, as listed above? |
Yes |
|
According to its domain, does the union potentially cover all occupations within the electricity sector among both blue-collar workers and white-collar workers? |
Yes |
|
According to its domain, does the union potentially cover, within the electricity sector, all forms and size classes of enterprises (for instance: public ownership, private ownership, multinationals, domestic companies, SMEs, etc. – of course, only insofar as they exist in the sector)? |
Yes |
|
According to its domain, does the union potentially cover all regions of your country? |
Yes |
|
According to its domain, does the union potentially cover employees outside the electricity sector? |
No |
|
General information on the union |
|
|
Is the union engaged in sector-related collective bargaining? |
Yes, through sectoral social dialogue, as described above |
|
If yes, what form of collective bargaining? |
Both single and multi employer bargaining |
|
How many employees are covered by the collective agreement/s signed by the union within the electricity sector (including those covered via extension mechanisms)? |
14,147 (all workers in the sector) but not all are covered by the wage terms |
|
Please indicate the type of membership |
Voluntary |
|
Is the union being consulted by the authorities in sector-related matters? |
Yes |
|
How often do sector-related consultations involve the union? |
On a regular basis |
|
Members |
|
|
How many active members in employment does the union have in total (i.e. within the electricity sector and beyond)? |
No information available |
|
How many active members in employment does the union have within the electricity sector only? |
No information available |
|
Does the union have members in the largest electricity companies? |
|
|
Affiliations |
|
|
To which international organisations is the union affiliated? |
PSI-Global, IndustriAll |
|
To which European-level organisations is the union affiliated? |
EPSU, IndustriALL |
|
To which national-level organisations is the union affiliated? |
LIGA |
|
Source of information |
Union representatives emailed on 18 February 2012 and 27 February 2013, but did not reply. Information collected from publicly available sources and correspondent’s general knowledge of the union Website/other secondary sources: www.vd.hu; www.liganet.hu EIRO national correspondent: Ildikó Krén |
|
. BDSZ |
|
|
Trade Union of Mining-, Energy- and Industry Workers |
|
|
Bánya-, Energia- és Ipari Dolgozók Szakszervezete |
|
|
The union’s domain |
|
|
According to its domain, does the union potentially cover the entire electricity sector, including all of the sub-activities as a whole, as listed above? |
No: the mines supply the power stations with coal; therefore they cover only the production of electricity (at Mátrai Erőmű and Vértesi Erőmű) |
|
According to its domain, does the union potentially cover all occupations within the electricity sector among both blue-collar workers and white-collar workers? |
Yes |
|
According to its domain, does the union potentially cover, within the electricity sector, all forms and size classes of enterprises (for instance: public ownership, private ownership, multinationals, domestic companies, SMEs, etc. – of course, only insofar as they exist in the sector)? |
No: there are no micro enterprises among the members |
|
According to its domain, does the union potentially cover all regions of your country? |
No: only in Northern-Hungary and in Trans-Danubia |
|
According to its domain, does the union potentially cover employees outside the electricity sector? |
Yes: mining, textile, clothing, leather sectors |
|
General information on the union |
|
|
Is the union engaged in sector-related collective bargaining? |
Yes |
|
If yes, what form of collective bargaining? |
Both single- and multi-employer bargaining |
|
How many employees are covered by the collective agreement/s signed by the union within the electricity sector (including those covered via extension mechanisms)? |
39,450 (2012) |
|
Please indicate the type of membership |
Voluntary |
|
Is the union being consulted by the authorities in sector-related matters? |
Yes |
|
How often do sector-related consultations involve the union? |
On a regular basis |
|
Members |
|
|
How many active members in employment does the union have in total (i.e. within the electricity sector and beyond)? |
4,223 (2012) |
|
How many active members in employment does the union have within the electricity sector only? |
1,752 Non-active: 13,974 (2012) |
|
Does the union have members in the largest electricity companies? |
|
|
Affiliations |
|
|
To which international organisations is the union affiliated? |
IndustriAll Global |
|
To which European-level organisations is the union affiliated? |
IndustriAll Europe |
|
To which national-level organisations is the union affiliated? |
National Association of Hungarian Trade Unions (MSZOSZ) |
|
Source of information |
Ferenc Rabi, president of BDSZ, contacted by email Website/other secondary sources: http://www.banyasz.hu/ EIRO national correspondent: Ildikó Krén |
8. Data on the employer associations
|
VTMSZ |
|
|---|---|
|
Employers’ Association of Electric Energy Companies |
|
|
Villamosenergia-ipari Társaságok Munkaadói Szövetsége |
|
|
The employer organisation’s domain |
|
|
According to its domain, does the employer organisation potentially cover the entire electricity sector, including all of the sub-activities as a whole, as listed above? |
Yes |
|
According to its domain, does the employer organisation potentially cover, within the electricity sector, all (legal) forms and size classes of enterprises (for instance: public ownership, private ownership, multinationals, domestic companies, SMEs, etc.) (of course, only insofar as they exist in the sector)? |
Yes |
|
According to its domain, does the employer organisation potentially cover companies, within the electricity sector, in all regions of your country? |
Yes |
|
According to its domain, does the employer organisation potentially cover companies and/or business activities outside the electricity sector? |
Yes (VMTSZ covers two companies (MVM, OVIT) outside the electricity sector, but VMTSZ itself is not active in those sectors) |
|
General information on the organisation |
|
|
Is the employer organisation engaged in sector-related collective bargaining? |
Yes |
|
If yes, what form of collective bargaining? |
Single-employer bargaining – all employers are represented by one associated employer organisation |
|
How many companies are covered by the collective agreement/s signed by the employer organisation within the electricity sector (including those covered via extension mechanisms)? |
21 members of the organisation (2011) and according to the extended collective agreement all employers under the NACE35.1. VTMSZ does not have data on this latter group of employers. |
|
How many employees are covered by the sector-related collective agreement/s signed by the employer organisation within the electricity sector (including those covered via extension mechanisms)? |
All employees in companies under the Nace 35.1. VTMSZ doesn’t have this data |
|
Please indicate the type of membership |
Voluntary |
|
Is the employer organisation being consulted by the authorities in sector-related matters? |
The sectoral social dialogue is bipartite; authorities do not participate. In some special cases (for example, concerning special rates for employees’ electricity use) there has already been consultation between the authorities and VTMSZ, but not in 2012. |
|
How often do sector-related consultations involve the employer organisation? |
On an ad-hoc basis – see above . |
|
Members |
|
|
How many member companies does the employer organisation have in total (i.e. within the electricity sector and beyond)? |
There are 21 member companies, 19 of them are under the Nace 35.1 (2011) |
|
How many employees work in these member companies in total (i.e. within the electricity sector and beyond)? |
10,314 (2011) |
|
How many member companies does the employer organisation have within the electricity sector only? |
19 (2011) |
|
How many employees work in these member companies within the electricity sector only? |
10,314 (2011) |
|
Are the largest electricity companies affiliated to this Employers organisation? |
Yes |
|
Affiliations |
|
|
To which international organisations is the employer organisation affiliated? |
- |
|
To which European-level organisations is the employer organisation affiliated? |
- |
|
To which national-level organisations is the employer organisation affiliated? |
Confederation of Hungarian Employers and Industrialists (MGYOSZ) |
|
Source of information |
Géza Várhelyi, secretary, contacted by email There is no website EIRO national correspondent: Ildikó Krén, Zsuzsa Rindt |
9. Inter-associational relationships
9.1 Inter-union relationships
9.1.1 Please list all trade unions covered by this study whose domains overlap within the sector.
EVDSZ and BDSZ, because of two power stations which are organised by BDSZ (Mátrai Erőmű and Vértesi Erőmű)
9.1.2 Do rivalries and competition exist among the trade unions within the sector, concerning the right to conclude collective agreements and to be consulted in public policy formulation and implementation?
No
9.1.3 If yes, are certain trade unions excluded from these rights?
No data supplied.
9.2 Inter-employer association relationships
9.2.1 Please list all employer associations covered by this study whose domains overlap within the sector.
No overlap, as there is only one employer organisation in the sector.
9.2.2 Do rivalries and competition exist among the employer associations within the sector, concerning the right to conclude collective agreements and to be consulted in public policy formulation and implementation?
No.
9.2.3 If yes, are certain employer associations excluded from these rights?
No
9.2.4 Are there large companies or employer associations within the sector which refuse to recognise the trade unions and refuse to enter collective bargaining?
No
9. Commentary
The electricity sector is one of the best organised sectors in the country. Social dialogue takes place in an atmosphere of mutual trust and cooperation. In the past, there have been some disputes with the government over additional taxes levied because of the crisis, which were criticised by the social partners as they increased the burden on electricity companies. In 2011 and 2012 the renewal of the sectoral collective agreement was possible only after a period of conflict (where the employees felt hampered by the limited strike law). The most recent collective agreement was signed at the beginning of 2013.
Ildikó Krén, Solution4.org
Annex: Organisations which are members of the sector-related European organisations
|
EPSU |
IndustriAll |
EURELECTRIC |
|
|---|---|---|---|
|
AT |
GDG, VERDI |
PRO-GE |
Österreichs E-Wirtschaft |
|
BE |
CSC, CSC - Services Publics, SLFP, CGSP ACOD, CGSP-P, CGSP-G GAZELCO Distrigas, CG-FGTB, CGSP-ACOD Gazelco, CGSP Admi |
ACV/CSC BIE, LBC-NVK, SETCA-BBTK |
FEBEG, SYNERGRID asbl |
|
BG |
NSFEB, FEW-Podkrepa, PK Services, FCIW-PODK, NDWU, VODOSNABDITEL, FITUGO, FCIW-PODKREPA |
NF Energy - CL Podkrepa, NFE, NEWF Podkrepa |
Bulgarian Electric Power Association |
|
CY |
FSGEC, PASYDY |
FPUEAE |
Electricity Authority of Cyprus |
|
CZ |
OS UNIOS, Public Services International, OS ECHO, OS DLV, RWE |
OS ECHO |
CSZE |
|
DE |
VERDI |
IG BCE |
BDEW |
|
DK |
3F workers union, DM, PEU, FOA, |
DK Funktionærforbund, DEF, CO Industri |
Dansk Energi |
|
EE |
AEEWTU |
AEEWTU - EEAÜL |
The Union of Electricity Industry of Estonia |
|
ES |
FITAG-UGT, AGBAR, FSAP-CCOO, FSP UGT |
FITAG-UGT, FITEQA-CC.OO, ELA-HAINBAT, FI CC.OO, |
UNESA |
|
FI |
JYTY, JHL, UNION of SALARIED EMPLOYEES, PARDIA, |
SÄHKÖLIITTO, UIL (INSINÖÖRILIITTO), |
Energiateollisuus ry |
|
FR |
CGT – FNME, FPSPSS-FO, CGT-SP, Public Services International, PSI, INTERCO CFDT, FNEM-FO, CFTC, UNSA, FNME-CGT, |
FCE-CFDT, FNEM FO |
UFE |
|
GR |
- |
PFEPPRCI, GENOP-DEI |
HELAS |
|
HU |
VKDSZ, EVDSZ, HVDSZ 2000 |
V.D.Sz.Sz. (EVDSZ), BDSZ |
EMT |
|
IE |
ESBOA, IMPACT, SIPTU, Electricity Supply Board Officers Association |
SIPTU |
EAI |
|
IT |
FEMCA, UILCEM, FP-CGIL, FLAEI-CISL, FILCTEM-CGIL, |
UILCEM |
UNEI |
|
LT |
LITUF, LVPF, LTUSE |
Nacionaline Lietuvos Elektros Asociacija |
|
|
LU |
CGT-L, Confédération Luxembourgeoise des Syndicats Chrétiens - Secteur Public, LCGB, |
LCGB |
Organisation des Entreprises d’Electricité du Luxembourg |
|
LV |
LTUE, LAKRS |
ENERGIJA, LINA |
LEEA |
|
MT |
GWU |
ENEMALTA Corporation |
|
|
NL |
ABVAKABO FNV, CNV FNV Bondgenoten, ABVAKABO FNV, EON |
FNV, CNV Vakmensen |
Energie-Nederland, Netbeheer Nederland |
|
PL |
SKEE Solidarnosc, PSS Solidarnosc |
SGiE Solidarnosc, |
PKEE |
|
PT |
Sindicato dos Trabalhadores da AdministraçãoPública, STAL, SINTAP, SINDEL, STE |
SINDEL |
ELECPROR |
|
RO |
GAZ ROM, UNIVERS, Public Services International, ENERGETICA, APA NOVA, GAZ MEDIAS, FS Gaz Romania |
UFS ATLAS, FSLCP, FNME, Hidrosind, FS Hidrosind, |
IRE, |
|
SE |
SEKO, NOFS, VISION, HK Kommunal, KOMMUNAL, TRANSPORT, FACKFORBUNDET |
UNIONEN, SEF, SVERIGES INGENJORER, SEKO |
Svensk Energi Swedenergy AB |
|
SI |
SDE SLOVENIJE |
SDE |
Slovenian Chamber of Commerce, Energy Association, EURELECTRIC Section |
|
SK |
SOZE, TUWIFWS, POZ, Slovak Gas Industry Trade Union, Slovak Trade Union of Health and Social Services, ECHOZ, SOZPS, SPP |
ZOJES |
ZZES |
|
UK |
Prospect, UNISON, NIPSA, FDA, Unite the Union, GMB |
GMB, UNITE (ex-TGWU), UNITE the UNION |
ENA, Energy UK, ERA |
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