Trade unions reject higher education reforms plans

In July 2003, the Hungarian Ministry of Education presented a draft plan for a reform of higher education. Trade unions representing higher education employees have rejected the proposals, which they see as opening the way to privatisation and thus threatening the public employee status of staff.

Following a recent sharp conflict over the planned reform of the healthcare sector (HU0306102N), a new dispute emerged between public sector trade unions and the government in summer 2003, this time in the education sector after the Ministry of Education (Oktatási Minisztérium, OM) issued a draft plan for reform of higher education on 15 July.

The eight trade unions representing higher education employees consider the draft reform issued by the Ministry unsuitable for consideration in social dialogue. The unions think that the plans open up the prospect of privatisation of the education system and, consequently, might lead to teachers and researchers losing their public service employee status in new privatised institutions. According to the unions, the state can not abandon higher education and research, since in Europe and everywhere else in the world the major part of higher education is financed by the state and the role of private institutions is small in this sector.

Trade unions are indignant about the fact that the Ministry would like to close the debate before the beginning of the educational year in autumn 2003, claiming that this is aimed at preventing students and other parties concerned from participating in the discussion. According to the Trade Union of Employees in Higher Education (Felsőoktatási Dolgozók Szakszervezete, FDSZ), which is arguably the major union representing employees in higher education, the draft reform also implies the introduction of tuition fees for students, despite the fact, in their 2002 election programme the current governing parties - the Hungarian Socialist Party (Magyar Szocialista Párt, MSZP) and the liberal Alliance of Free Democrats (Szabad Demokraták Szövetsége, SZDSZ) - made promises not to introduce such fees. Furthermore, unions have also criticised plans to cut the state education budget by HUF 6.5 billion (EUR 26 million) in 2003 and by HUF 10 billion (EUR 40 million) in 2003.

The Deputy State Secretary at the Ministry of Education, in response to the trade unions' criticisms, argued that for the modern operation of higher education new approaches are required which allow for financial management similar to that in the business world. He pointed out that several services - such as student canteens and book-selling - can already be performed by contracted-out business units. He claimed that the application of the Act on Public Service Employees to higher education often hinders achievement-oriented education, as it does not allow good teachers to receive high salaries and thus forces professors and researchers to earn extra money from other enterprises instead on concentrating on their main job. An infusion of private capital into higher education would allow for higher standards in education and research. Nonetheless, the Ministry stated that the documents issued on the proposed reform are not a finalised proposal, and there will be substantial debate and consultation ahead.

Furthermore, the Ministry denied that it plans to introduce tuition fees. Concerning criticism of the education budget cuts, the Ministry stated that it is too early to assess this issue since the planning of the 2004 budget has just started, and there are no final amounts decided yet - it has not been established what cost cuts are to be borne by the educational institutions and by the Ministry.

It is likely that discussions on the planned reform will be extensive, especially as it is likely to put in question the employment status of many public service employees.