EMCC European Monitoring Centre on Change

AES Hungary

Company/Organisation:
AES Hungary

Geographic Location

Country: Hungary
Region: Borsod-Abauj-Zemplen; Eszak-Magyarorszag; Alfod es Eszak
Location of affected unit(s): Tiszapalkonya, Kazincbarcika

Company

Sector: Utilities
Electricity, gas, steam and air conditioning supply
35 - Electricity, gas, steam and air conditioning supply
Number Employed: 219
Group: AES

Employment Effects

Announcement Date: 29-03-2011
Planned Job Reductions min: 203
Type of Restructuring: Closure

Additional Information

AES Hungary, the Hungarian unit of the US-based AES Corporation, notified to the county's labour authority the layoff of 125 workers at 71MW biomass-fuelled Borsod Power Plant and the layoff of another 78 workers at the 90MW coal-fuelled Tiszapalkonya Power Plant. The two plants had become less competitive due to long-term decline in the price of wholesale electricity, the rising price of coal and biomass and an increase in expenses related to carbon-dioxide emissions.

Negotiations between the management and trade union representatives were held on 7 March 2011. The aim of these negotiations was to discuss the extra benefits to be paid to the affected workers and inform the employees about the situation at the plants.

The country manager said he was not aware at the time of the negotiations that the agreement signed with the trade unions about the additional social remuneration will not be covered by AES Corporation. The Electric Workers Trade Union (VDSZSZ) has sent a letter to the Hungarian managing director to inform him that they are willing to continue the negotiations and draft agreements on wages and social benefits. The union calls for clear and appropriate measures in line with the sectoral collective agreement and the National Interest Reconciliation's agreement. AES Hungary said it will continue to operate at its AES Tisza II Power Plant in Tiszaújváros. This plant is gas-fuelled with a capacity of 900MW.