Hungary: Representativeness of the European social partner organisations – Personal services sector

  • Observatory: EurWORK
  • Topic:
  • Published on: 20 Styczeń 2010



About
Country:
Hungary
Author:
Institution:

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 personal 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.

  2003 2005
Number of employers 180*** 203***
Aggregate employment* 1,683*** 1,148***
Male employment* n.d. n.d.
Female employment* n.d. n.d.
Aggregate employees n.d. n.d.
Male employees n.d. n.d.
Female employees n.d. n.d.
Aggregate sectoral employment as a % of total employment in the economy 0.04 % 0.03 %
Aggregate sectoral employees as a % of the total number of employees in the economy n.d. n.d.

* employees plus self-employed persons and agency workers

** or most recent data

*** employers with at least 5 employees

2. The sector’s trade unions and employer associations

This section includes the following trade unions and employer associations:

There are no trade unions in the sector.

1. trade unions which are party to sector-related collective bargaining (In line with the conceptual remarks outlined in the accompanying briefing note, we understand sector-related collective bargaining as any kind of collective bargaining within the sector, i.e. single-employer bargaining as well as multi-employer bargaining. For the definition of single- and multi-employer bargaining, see 4.2)

2. trade unions which are a member of the sector-related European Union Federation (i.e. UNI-EUROPA – Hair and Beauty)

-

3. employer associations which are a party to sector-related collective bargaining

There are no employer associations in the sector.

4. employer associations (business associations) which are a member of the sector-related European Business Federation (i.e. COIFFURE EU)

-

2a Data on the trade unions

2a.1 Type of membership (voluntary vs. compulsory)-2a.2 Formal demarcation of membership domain (e.g. white-collar workers, private-sector workers, personal services employees, etc.)

-

2a.3 Number of union members (i.e. the total number of members of the union as a whole)

-

2a.4 Number of union members in the sector

-

2a.5 Female union members as a percentage of total union membership

-

2a.6 Domain density: total number of members of the union in relation to the number of potential members as demarcated by the union domain (see 2a.2)

-

2a.7 Sectoral density: total number of members of the union in the sector in relation to the number of employees in the sector, as demarcated by the NACE definition

-

2a.8 Sectoral domain density: total number of members of the union in the sector in relation to the number of employees which work in that part of the sector as covered by the union domain

-

2a.9 Does the union conclude collective agreements?

-

2a.10 For each association, list their affiliation to higher-level national, European and international interest associations (including cross-sectoral associations)

-

2b Data on the employer associations

2b.1 Type of membership (voluntary vs. compulsory)

-

2b.2 Formal demarcation of membership domain (e.g. SMEs, small-scale crafts/industry, personal services enterprises, etc.)

-

2b.3 Number of member companies (i.e. the total number of members of the association as a whole)

-

2b.4 Number of member companies in the sector

-

2b.5 Number of employees working in member companies (i.e. the total number of the association as a whole)

-

2b.6 Number of employees working in member companies in the sector

-

2b.7 Domain density in terms of companies: total number of member companies of the association in relation to the number of potential member companies as demarcated by the association’s domain (see 2b.2)

-

2b.8 Sectoral density in terms of companies: total number of member companies of the association in the sector in relation to the number of companies in the sector, as demarcated by the NACE definition

-

2b.9 Sectoral domain density in terms of companies: total number of member companies of the association in the sector in relation to the number of companies which operate in that part of the sector as covered by the association’s domain

-

2b.10 Domain density in terms of employees represented: total number of employees working in the association’s member companies in relation to the number of employees working in potential member companies, as demarcated by the association’s domain (see 2b.2)

-

2b.11 Sectoral density in terms of employees represented: total number of employees working in the association’s member companies in the sector in relation to the number of employees in the sector, as demarcated by the NACE definition

-

2b.12 Sectoral domain density in terms of employees represented: total number of employees working in the association’s member companies in the sector in relation to the number of employees working in companies which operate in that part of the sector as covered by the association’s domain

-

2b.13 Does the employer association conclude collective agreements?

-

2b.14 For each association, list their affiliation to higher-level national, European and international interest associations (including the cross-sectoral associations).

-

3. Inter-associational relationships

3.1. Please list all trade unions covered by this study whose domains overlap.

-

3.2. Do rivalries and competition exist among the trade unions, concerning the right to conclude collective agreements and to be consulted in public policy formulation and implementation?

-

3.3. If yes, are certain trade unions excluded from these rights?

-

3.4. Same question for employer associations as 3.1.

-

3.5. Same question for employer associations as 3.2.

-

3.6. Same question for employer associations as 3.3.

-

3.7. Are there large companies or employer associations which refuse to recognise the trade unions and refuse to enter collective bargaining?

-

4. The system of collective bargaining

4.1. 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 no collective agreement currently in operation.

4.2. Estimate the relative importance of multi-employer agreements and of single-employer agreements as a percentage of the total number of employees covered. (Multi-employer bargaining is defined as being conducted by an employer association on behalf of the employer side. In the case of single-employer bargaining, it is the company or its subunit(s) which is the party to the agreement. This includes the cases where two or more companies jointly negotiate an agreement.)

-

4.2.1. Is there a practice of extending multi-employer agreements to employers who are not affiliated to the signatory employer associations?

While this is provided for by the Minister of Labour and Social Affairs, in the absence of a sectoral agreement it cannot be applied in this sector.

4.2.2. If there is a practice of extending collective agreements, is this practice pervasive or rather limited and exceptional?

4.3. List all sector-related multi-employer wage agreements* valid in 2006 (or most recent data), including for each agreement information on the signatory parties and the purview of the agreement in terms of branches, types of employees and territory covered.

There is no sector-related wage agreement.

* Only wage agreements which are (re)negotiated on a reiterated basis.

Sector-related multi employer wage agreements
Bargaining parties Purview of the sector-related multi-employer wage agreements
  Sectoral Type of employees Territorial
- - - -
- - - -

4.4. List the sector’s four most important collective agreements (single-employer or multi-employer agreements) valid in 2006 (or most recent data), including for each agreement information on the signatory parties and the purview of the agreement in terms of branches, types of employees and territory covered. Importance is measured in terms of employees covered.

Four most important agreements in terms of employees covered
Bargaining parties Purview of the agreements
  Sectoral Type of employees Territorial
- - - -
- - - -
- - - -
- - - -

5. Formulation and implementation of sector-specific public policies

5.1. Are the sector’s employer associations and trade unions usually consulted by the authorities in sector-specific matters? If yes, which associations?

-

5.2. 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:

Sector-specific public policies*
Name of the body and scope of activity Bipartite/tripartite Origin: agreement/statutory Trade unions having representatives (reps) Employer associations having reps.
- - - - -
- - - - -

* Sector-specific policies specifically target and affect the sector under consideration.

6. Statutory regulations of representativeness

6.1. In the case of the trade unions, do statutory regulations exist which establish criteria of representativeness which a union must meet, so as to be entitled to conclude collective agreements? If yes, please briefly illustrate these rules and list the organisations which meet them.

The 1992 Labour Code (Section 32-33) defines the criteria for representativeness and stipulates the rules for collective bargaining entitlement at company level:

  • A union is deemed representative if it received 10% of the cast votes at the elections of the works council.
  • If there is only one trade union at the employer, and it received 50% of the cast votes at the elections of the works council, this trade union has the right to conclude the collective agreement.
  • If there is more than one trade union at the place of employment, then – as a basic rule – all trade unions jointly have the right to conclude the collective agreement, provided that they received at least 50% of the votes cast at the election of the works council.
  • If the collective agreement cannot be concluded by all the trade unions, the representative trade unions have the right to conclude it, provided they receive 50% of the votes cast at the election of the works council.
  • In some cases, not even the representative trade unions can conclude the collective agreement because they did not receive 50% support or they fail to reach an agreement among themselves concerning the standpoint of the employees. If so, the trade union that receives 65% of the votes has the right to conclude the collective agreement independently.
  • Where even this condition is not met, the negotiations may be carried on with the participation of all the trade unions represented at place of employment and the text of the agreement can be drafted, but the collective agreement may only be concluded if the employees vote in favour of it. The vote is valid only if more than half of the employees take part in it and if the majority of the voters are in favour of it. In practice, this means that the collective agreement can be concluded with the support of one-fourth of the employees.

Furthermore, a trade union is deemed to be representative if it organises two-thirds of an occupational group (Section 29 of the 1992 Labour Code).

6.2. In the case of the trade unions, do statutory regulations exist which establish criteria of representativeness which a union must meet, so as to be entitled to be consulted in matters of public policy and to participate in tripartite bodies? If yes, please briefly illustrate these rules and list the organisations which meet them.

The rules for sectoral and national representation for taking part in consultative bodies were set out in a draft bill in February 2006, which was later passed by the Parliament but deferred by the President to the Constitutional Court for a review of their constitutionality (HU0701039I). So far, no decision has been made by the Constitutional Court. Sectoral representativeness rules are based on a 2004 national agreement between the social partners, which laid down the criteria and established a special tripartite Committee to decide which organisations should be deemed as representative. (HU0501105F). The complex criteria for participation in the SSDCs include appropriate legal foundations of the organisations, the share of companies and employees are covered by them, affiliation to national and international federations, past experiences in social dialogue and collective bargaining, results of the latest work council elections (for unions only), etc. The Committee makes its decisions by using a complicated score-system, and finally may award different status for the applicants: consultative, decision making and representative decision making ones.

Nevertheless, there is no sectoral social dialogue committee established for the sector concerned.

6.3. Are elections for a certain representational body (e.g. works councils) established as criteria for trade union representativeness? If yes, please report the most recent electoral outcome for the sector.

See 6.1.

6.4. Same question for employer associations as 6.1.

According to the Labour Code an employer may conclude only one collective agreement with trade unions at the given company/institution.

There is no legal criterion for employer associations to conclude sectoral collective agreements, but in practice, their by-law are supposed to include the authorisation to do so on behalf of the members, or a procedure for ratification (or possible opt-outs) concerning the agreement negotiated by the association

6.5. Same question for employer associations as 6.2.

See 6.3.

6.6. Are elections for a certain representational body established as criteria for the representativeness of employer associations? If yes, please report the most recent outcome for the sector.

No

7. Commentary

This sector is completely unorganised in Hungary.

Adrienn Bálint, Máté Illés and László Neumann, Institute of Political Science, Hungarian Academy of Sciences

Useful? Interesting? Tell us what you think. Hide comments

Dodaj komentarz