Hungary: Representativeness of the European social partner organisations in the cross-industry social dialogue

  • Observatory: EurWORK
  • Topic:
  • Collective bargaining,
  • Social partners,
  • Social dialogue,
  • Industrial relations,
  • Published on: 17 March 2014



About
Country:
Hungary
Author:
Ildikó Krén
Institution:

The economic downturn and political changes are likely to have affected employment and collective bargaining. The crisis coincided with an already fragile economic and political situation. The deficit in the first three quarters of 2012 was HUF 375 billion or 1.8% of GDP, which would not have been so low without the ‘crises taxes’ – the asset transfer from private pension funds to state budget – and the increased revenue from income tax and social security contributions. In 2012 GDP was only equal to the nominal value in 2011, which is a de facto decrease. There are around 1.6 million companies in Hungary, only 5,500 of which have more than 49 employees, thus the economy relies on micro- and small companies. That means that industrial relations take place only in a relatively small number of companies in the private sector.

The current government has taken steps to change the system of tripartite labour relation on cross-industrial level and on company leave since 2010. The government stopped agreeing on minimum wages in the tripartite consultation forum (OÉT), and instead established a larger consultative forum, the NGTT, without the power of decision-making. Another consultative forum was initiated by the government at the end of 2011, but not all employers and trade union organisations were invited.

1. Cross-sector collective agreements

1.1. Are employees in your country covered by cross-sector collective bargaining conducted by peak-level social partner organisations, including economy-wide (covering all sectors), inter-sector (covering two or more sectors but not all) or occupational (across several sectors) bargaining?

Yes, economy-wide collective bargaining

1.2. If yes, please indicate whether cross-sector collective bargaining takes place at:

  • National level

Until 2010 in Hungary the National Council for the Reconciliation of Interests (OÉT) existed as a tripartite bargaining body, setting minimum wages each year for the following year. (The collective agreements listed below concern minimum wages). Since 2010 the National Economic and Social Council (NGTT) and the Consultative Forum of the Industry and the Government (VKF) have served as consultative bodies. The new practice of consultation on national minimum wages (both minimum wages and guaranteed minimum wages) is as follows: three national trade union confederations (MSZOSZ, LIGA and Munkástanácsok) consult three national employers’ organisations (ÁFÉOSZ-KESZ, MGYOSZ and VOSZ) about the wage increase for the following year within the frames of the VKF. When they come to a consensus, their agreement is to be submitted to the government which consults the NGTT on it and makes an announcement, codifying the agreement.

Since 2004 sectoral social dialogue committees form the Council of Social Dialogue Committees (Ágazati Párbeszéd Bizottságok Tanácsa, ÁPBT.) The ÁPBT has become the major decision-making forum in matters concerning the work and finance of these committees. This might be understood as a kind of inter-sectoral bargaining, but it is only an administrative forum for the sectoral social dialogue. In each of this only sector-related issues are discussed.

There is an arbitration committee, the MKDSZ, which arbitrates at the request of the conflicting parties in company-level conflicts between employers and trade unions/works councils

There are no regional/territorial levels of cross-sectoral bargaining

1.3. If yes, please consider the five most relevant* cross-sector collective agreements valid in 2011 (or most recent data) and indicate their type (economy-wide, inter-sector, occupational), the name of the agreements and their duration, the geographical scope (national/territorial), the sectors, occupations and types of undertakings (e.g. only SME) covered by the agreements, the bargaining parties to the agreements and the numbers of employees covered (also estimate)

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

Table 1: Cross-sector (wage) agreements

Type

Name (years covered)

National/Territorial (if territorial, please specify the geographical coverage)

Covered sectors, occupations, undertakings

Bargaining parties

Number of covered employees

Agreement on minimum wages

2011 (The agreement was made annually until 2010. In 2011 the minimum wage was not negotiated between the social partners but decided by the government; however for 2011 a negotiated agreement was valid, as described.)

National

All sectors, undertakings

1. the government

2. the employers' confederations:

AMSZ

ÁFEOSZ-KÉSZ

IPOSZ

KISOSZ

OKISZ

MOSZ

MGYOSZ

STRATOSZ

VOSZ

3. the employees’ confederations:

ASZSZ

ÉSZT

LIGAMSZOSZMunkástanácsok

SZEF

3779000 (KSH, 2011)

3811900 (eurostat: http://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=lfsi_emp_a&lang=en) 2011

Agreement on minimum wages

2012 (wage increase has been agreed in the VKF, but not yet finally announced by the government)

National

All sectors, undertakings

1. the government

2. the employers' confederations:

MGYOSZ

ÁFÉOSZ, VOSZ

3. the employees’ confederations:

LIGAMSZOSZMunkástanácsok

3901400 (3 Q. 2012)

http://www.ksh.hu/docs/hun/xstadat/xstadat_evkozi/15_64_abra_1209.pdf

3811900 (eurostat: http://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=lfsi_emp_a&lang=en ) 2011

2. Formulation and implementation of cross-industry public policies

2.1. Do bipartite or tripartite statutory bodies dealing with labour market and industrial relations regulation at cross-sector level exist? If yes, please indicate their main domain of activity (for instance, health and safety, equal opportunities, labour market, social security and pensions etc.) and the interest organisations having representatives in them:

Only partly

The Hungarian system of industrial relations has had strong corporatist elements and has been based on social partnership. This applied in 2012 even though the situation has changed in the past few years, to the detriment of the social dialogue system, as the current government avoids the tripartite consultation of social partners and especially trade unions in the shaping of the living and working conditions of people. In 2010–2011 the government consulted the social partners mainly unilaterally, on an ad-hoc basis and only partly on the basis of the real power/influence according to number of members or other representativity criteria.

The National Interest Reconciliation Council (OÉT) was the tripartite forum for employees, employers and the government after the shift to democracy in 1988/1989. In the beginning the aim was to involve social partners in the transition process; later on it focused on economic and employment issues in a highly institutionalised form. Codetermination rights were not given and even substantial consultation was rare – anyway: There had been a formal social dialogue during the last 20 years on national level, even though one commentator, David Ost, called it ‘illusory corporatism’, as this forum is sometimes judged to be a way to get trade unions to endorse the introduction of neoliberalism. The main issues were economic issues, privatisation, legal frame development, labour regulation, wage condition, taxation, etc.

But in the last few years of the existing OÉT, the only codetermination has been about the yearly agreement on minimum wages and additional holiday days, which specified that all sectoral and company agreements had to be better than the minimum wage. However there was a regular exchange of opinions between employers and trade union with the respective governments on socio-economic and political issues.

In 2011 The present government announced plans to replace OÉT with a National Economic and Social Council (NGTT, 2011. law no XCIII.), as of January 2012. Members of the NGTT are unions and employers, but also representatives of business chambers, social and scientific civil organisations as well as Hungary’s historical churches (altogether 32 organisations). There is regular participation from the government’s side, but at the council’s plenary sessions ministers participate as observers.

Council members have no decision-making rights, only the option to draft proposals to the government. In reality the government presents drafted regulations and laws to the NGTT without proper time to prepare, and the time for consultation is limited. That means in effect that the cabinet alone can decide on wage and employment-related regulations, which is really a novelty for Hungary.

In 2011 another forum was established, the Consultative Forum of the Industry and the Government (VKF), on which three employers’ organisations (MGYOSZ, ÁFÉOSZ, and VOSZ) and three trade unions (LIGA, MSZOSZ, and Munkástanácsok) consult about industrial policy. The aim is – besides consulting – the development of joint positions regarding employment, industrial development and related socio-economic and financial aspects and within that scope about the wage incresase for the following year.

Table 2: Cross-sector public policies*
Name of the body and scope of activity Bipartite/tripartite Trade unions (union confederations) having representatives (reps) Employer associations having reps

VKF

  • Strengthening cooperation between interest representatives and government,
  • promoting economic development,
  • improving competitiveness,
  • developing business environment, and
  • strengthening social dialogue within the industry.

tripartite

Liga, Munkástanácsok, MSZOSZ

VOSZ, MGYOSZ, ÁFEOSZ-KÉSZ-

NGTT

  • It replaces the National Interest Reconciliation Council (OÉT,
  • It is a body consulting on economic policy, on budget and on public health,
  • It is suitable for discussing strategic issues, however, it will not be a forum for reconciliation steering processes,

five-sided reconciliation forum; the government is not a member,

Its 32 members are:

  • Employers organisations
  • Employees (Trade Unions)
  • NGOs
  • Churches
  • Representatives of science
  • Chamber of commerce

ASZSZ, ÉSZT, LIGA, MSZOSZ, Munkástanácsok, SZEF

AMSZ

ÁFEOSZ-KÉSZ

IPOSZ

KISOSZ

OKISZ

MOSZ

MGYOSZ

STRATOSZ

VOSZ

National Interest Reconciliation Council of the Public Sector (Országos Közszolgálati Érdekegyeztető Tanács, OKÉT):

  • It is the body consulting on the budget and wages of the public sector

tripartite

  1. national trade union confederations representing mainly public servants in several areas and professions of the public sector working related to legal relations and uniting several sectoral or professional unions (trade union federation) having the right to participate in the national reconciliation (SZEF, ÉSZT, FRDÉSz are regular members ; MSZOSZ, Liga have the status of regular guest)

The national interest representatives of local governments

Sectoral Social Dialogue Committees and its coordinating committee (Ágazati Párbeszéd Bizottságok Tanácsa ÁPBT)

  • Provides an institutional framework for the coordination necessary for its functioning – adopting of principles (information, consultation, initiatives, declarations on sector level and therefore not a cross-sectoral body).

Bipartite, but financially supported and formally organised by the government

The employees’ representatives of the Sectoral Social Dialogue Committees, sector unions

The employers’ representatives of the Sectoral Social Dialogue Committees

* Cross-sector policies target and affect (major part of) the national economy.

3. The peak-level associations on the labour and employer side

This section includes the following cross-sector, peak-level trade union confederations and cross-sector, peak-level employer organisations:

(i) cross-sector, peak-level trade union confederations which are directly or indirectly (via their member unions) party to cross-sector collective bargaining/collective employment regulation OR directly involved in bipartite or tripartite consultation in labour market and industrial relations regulation at cross-sector level

  • Autonomous Trade Unions Confederation (Autonóm Szakszervezetek Szövetsége, ASZSZ www.autonomok.hu);
  • Trade Union Confederation of Professionals (Értelmiségi Szakszervezeti Tömörülés, ÉSZT, www.eszt.hu);
  • National Confederation of Hungarian Trade Unions (Magyar Szakszervezetek Országos Szövetsége, MSZOSZ, www.mszosz.hu )
  • National Confederation of Workers’ Council (Munkástanácsok Országos Szövetsége, Munkástanácsok, www.munkastanacsok.hu);
  • Democratic League of Independent Trade Unions (Független Szakszervezetek Demokratikus Ligája, LIGA www.liganet.hu) ;
  • Forum for the Co-operation of Trade Unions (Szakszervezetek Együttműködési Fóruma, SZEF, www.szef.hu);

(ii) cross-sector, peak-level trade union confederations which are a member of at least one of the cross-sector European Union Federations (i.e. the European Trade Union Confederation – ETUC; Eurocadres; and the European Confederation of Executives and Managerial Staff – CEC)

ETUC: all the six: ASZSZ, Liga, MUNKÁSTANÁCSOK, MSZOSZ, SZEF, ÉSZT

Euorocadres: ÉSZT

(iii) cross-sector, peak-level employer organisations which are directly or indirectly (via their member associations) a party to cross-sector collective bargaining/collective employment regulation OR directly involved in bipartite or tripartite consultation in labour market and industrial relations regulation at cross-sector level

  • The Agricultural Employers' Federation (Agrár Munkaadói Szövetség, AMSZ)
  • The Hungarian National Federation of Consumer Co-operative Societies and Trade Associations (Általános Fogyasztási Szövetkezetek és Kereskedelmi Társaságok Országos Szövetsége, ÁFEOSZ-KÉSZ)
  • the National Federation of Traders and Caterers (Kereskedők és Vendéglátók Országos Érdekképviseleti Szövetsége, KISOSZ)
  • the Hungarian Industrial Association (Magyar Iparszövetség, OKISZ)
  • the National Federation of Craftsmen Boards (Ipartestületek Országos Szövetsége, IPOSZ)
  • the Confederation of Hungarian Employers and Industrialists ( Munkaadók és Gyáriparosok Országos Szövetsége MGYOSZ)
  • the National Federation of Agricultural Co-operators and Producers (Mezőgazdasági Szövetkezők és Termelők Országos Szövetsége, MOSZ)
  • the National Association of Strategic and Public Utility Companies (Stratégiai és Közszolgáltató Társaságok Országos Szövetsége, Stratosz), with 33 company members listed below:

1. Hungarian State Holding Company (MNV Zrt.)

2. Hungarian Post Office Co. Ltd.

3. Hungarian Railway Enterprises Union

4. HUNGRAIL Hungarian Rail Association

5. MÁV Hungarian State Railways Co. Ltd.

6. MÁV-START Railway Passenger Transport Co.

7. CER Hungary Co. (CER Hungary Central European Railway Cargo, Trading and Services Privately Held Company Limited by Shares)

8. KÖZGÉP Steal Structure-and-Construction Co.

9. Volan Professional Association

10. Agria Volán Bus Traffic Co. Ltd.

11. Alba Volán Bus Traffic Co. Ltd.

12. Bakony Volán Bus Traffic Co. Ltd.

13. Balaton Volán Bus Traffic Co. Ltd.

14. Borsod Volán Bus Traffic Co. Ltd.

15. Gemenc Volán Bus Traffic Co. Ltd.

16. Hajdú Volán Bus Traffic Co. Ltd.

17. Hatvani Volán Bus Traffic Co. Ltd.

18. Jászkun Volán Bus Traffic Co. Ltd.

19. Kapos Volán Bus Traffic Ltd.

20. Kisalföld Volán Bus Traffic Co. Ltd.

21. Kőrös Volán Bus Traffic Co. Ltd.

22. Kunság Volán Bus Traffic Co. Ltd.

23. Mátra Volán Bus Traffic Co. Ltd.

24. Nógrád Volán Bus Traffic Co. Ltd.

25. Pannon Volán Bus Traffic Co. Ltd.

26. Somló Volán Bus Traffic Co. Ltd.

27. Szabolcs Volán Bus Traffic Co. Ltd.

28. Tisza Volán Bus Traffic Co. Ltd.

29. Vasi Volán Bus Traffic Co. Ltd.

30. Vértes Volán Bus Traffic Co. Ltd.

31. Zala Volán Bus Traffic Co. Ltd.

32. Volánbusz Transport Company Ltd.

  • GOMI Ltd.
  • the National Association of Entrepreneurs and Employers (Vállalkozók és Munkáltatók Országos Szövetsége, VOSZ )

(iv) cross-sector, peak-level employer organisations which are a member of at least one of the cross-sector European Employer/Business Federations (i.e.BUSINESSEUROPE; the European Centre of Employers and Enterprises providing Public Services – CEEP; and the European Association of Craft and Small and Medium-Sized Enterprises – UEAPME)

  • BUSINESSEUROPE: MGYOSZ
  • CEEP: STRATOSZ
  • UEAPME: IPOSZ, KISOSZ, OKISZ

3a Overview of the Industrial relations landscape in the economy3b Data on the cross-sector, peak-level trade union confederations

Table 3: Trade union confederation fact sheet: Autonomous Trade Unions Confederation (ASZSZ :Autonóm Szakszervezetek Szövetsége)

According to its domain, does the union confederation potentially cover the entire economy (in terms of sectors)?

No

Public administration is excluded

According to its domain, does the union confederation potentially cover all occupations among both blue-collar workers and white-collar workers?

Yes

According to its domain, does the union confederation potentially cover all forms and size classes of enterprises (for instance: public ownership, private ownership, multinationals, domestic companies, SMEs, etc.)?

Yes

According to its domain, does the union confederation potentially cover all regions of your country?

Yes

General information on the union confederation

Is the union confederation directly or indirectly (via its member unions) engaged in cross-sector collective bargaining?

No (since 2011)

If Yes. Is this a form of economy-wide (covering all sectors), inter-sector (covering two or more sectors but not all) or occupational (across several sectors) bargaining?

Economy-wide

If Yes. Is this a form of national (covering all regions) or regional/territorial (covering only certain regions or geographical areas) bargaining?

National

Type of membership

Voluntary

Is the union confederation directly consulted by the authorities in matters of cross-sector significance?

Yes

If Yes. Is the consultation carried out…

Unilaterally

If Yes. Do consultations in matters of cross-sector significance involve this union confederation…?

… on an ad-hoc basis

Members

How many lower-level trade union organisations are affiliated to the trade union confederation?

10 sectoral unions (2012) such as Water suppliers, Chemical industry, HoReCa, public transport and 7 professional unions (2012) like engine drivers, public buses in Budapest, teamsters, track workers

How many active members in employment does the union confederation have in total (directly or indirectly via its member unions)?

70,000 (2012) active workers

plus 10,000 (2012) pensioners and students

Please indicate/ estimate the union confederation’s density in terms of active members.

30-40% according the president in an interview. He calculated the destiny as the level of members within the companies and sectors were ASZSZ has members at all.

Affiliations

To which international organisations is the union confederation affiliated?

ITUC

To which European-level organisations is the union confederation affiliated?

ETUC

Source of information

President of the trade union

Website: www.aszsz.hu

EIRO national correspondent: Ildikó Krén

Table 4: Trade union confederation fact sheet: Trade Union Confederation of Professionals (ÉSZT; Értelmiségi Szakszervezeti Tömörülés)

According to its domain, does the union confederation potentially cover the entire economy (in terms of sectors)?

Yes, potentially

In practice they are not present in all sectors

According to its domain, does the union confederation potentially cover all occupations among both blue-collar workers and white-collar workers?

Yes

According to its domain, does the union confederation potentially cover all forms and size classes of enterprises (for instance: public ownership, private ownership, multinationals, domestic companies, SMEs, etc.)?

Yes

But mainly in public sector, in public services

According to its domain, does the union confederation potentially cover all regions of your country?

Yes

General information on the union confederation

Is the union confederation directly or indirectly (via its member unions) engaged in cross-sector collective bargaining?

Yes, directly

Information not available

If Yes. Is this a form of economy-wide (covering all sectors), inter-sector (covering two or more sectors but not all) or occupational (across several sectors) bargaining?

Economy-wide

If Yes. Is this a form of national (covering all regions) or regional/territorial (covering only certain regions or geographical areas) bargaining?

National

If No. Is the union confederation engaged in cross-sector collective employment regulation (see briefing note for explanation)?

Not applicable

Type of membership

Voluntary

Is the union confederation directly consulted by the authorities in matters of cross-sector significance?

Yes

If Yes. Is the consultation carried out…

Within established tripartite structures

If Yes. Do consultations in matters of cross-sector significance involve this union confederation…?

… on an ad-hoc basis

… on a regular basis

both depending of the issues

Members

How many lower-level trade union organisations are affiliated to the trade union confederation?

10

How many active members in employment does the union confederation have in total (directly or indirectly via its member unions)?

52,300 (2011)

24,200 inactive – including 427 students and 132 unemployed (2011)

Please indicate/ estimate the union confederation’s density in terms of active members.

Estimated 19.5%

Affiliations

To which international organisations is the union confederation affiliated?

ETUC

To which European-level organisations is the union confederation affiliated?

EUROCADRES

Source of information

Trade union confederation official

Website: www.eszt.hu

EIRO national correspondent: Ildikó Krén

Table 5: Trade union confederation fact sheet: National Confederation of Hungarian Trade Unions (MSZOSZ; Magyar Szakszervezetek Országos Szövetsége)

According to its domain, does the union confederation potentially cover the entire economy (in terms of sectors)?

No, not the law enforcement and public services

According to its domain, does the union confederation potentially cover all occupations among both blue-collar workers and white-collar workers?

Yes

According to its domain, does the union confederation potentially cover all forms and size classes of enterprises (for instance: public ownership, private ownership, multinationals, domestic companies, SMEs, etc.)?

Yes

According to its domain, does the union confederation potentially cover all regions of your country?

Yes

General information on the union confederation

Is the union confederation directly or indirectly (via its member unions) engaged in cross-sector collective bargaining?

No

There is no cross-sectoral collective bargaining, thus the confederation cannot participate in such bargaining. There is only sector related collective bargaining, in which ones MSZOSZ indirectly participates (via its member unions)

If Yes. Is this a form of economy-wide (covering all sectors), inter-sector (covering two or more sectors but not all) or occupational (across several sectors) bargaining?

Not applicable

If Yes. Is this a form of national (covering all regions) or regional/territorial (covering only certain regions or geographical areas) bargaining?

Not applicable

If No. Is the union confederation engaged in cross-sector collective employment regulation (see briefing note for explanation)?

Yes, the laws, and regulations

Type of membership

Voluntary

Is the union confederation directly consulted by the authorities in matters of cross-sector significance?

Yes

If Yes. Is the consultation carried out…

Within established tripartite structures

Although it is notable that VKF is a tripartite consultation forum, where not all of the concerned organisations are taking part.

If Yes. Do consultations in matters of cross-sector significance involve this union confederation…?

… on a regular basis

Members

How many lower-level trade union organisations are affiliated to the trade union confederation?

33 (2012)

How many active members in employment does the union confederation have in total (directly or indirectly via its member unions)?

125,000 (2012)

Please indicate/ estimate the union confederation’s density in terms of active members

According to the official employment statistics there are 2.6 million employees in Hungary. Based on this, MSZOSZ’s density is around 5% (2012)

Affiliations

To which international organisations is the union confederation affiliated?

ITUC

To which European-level organisations is the union confederation affiliated?

ETUC; TUAC; ILO; IFWEA; ETUI-REHS

Source of information

Trade union confederation officials

Website: www.mszosz.hu

EIRO national correspondent: Ildikó Krén

Table 6: Trade union confederation fact sheet: National Confederation of Workers’ Councils (Munkástanácsok Országos Szövetsége)

According to its domain, does the union confederation potentially cover the entire economy (in terms of sectors)?

No

Sectors: agriculture, forestry, fishing, electricity, gas, air conditioning, hotel and catering, IT, communication, financial and insurance, retail, professional and scientific activities, electrical, administration and services, arts and entertainment, leisure activities

According to its domain, does the union confederation potentially cover all occupations among both blue-collar workers and white-collar workers?

Yes

According to its domain, does the union confederation potentially cover all forms and size classes of enterprises (for instance: public ownership, private ownership, multinationals, domestic companies, SMEs, etc.)?

Yes

According to its domain, does the union confederation potentially cover all regions of your country?

Yes

General information on the union confederation

Is the union confederation directly or indirectly (via its member unions) engaged in cross-sector collective bargaining?

Yes, directly

If Yes. Is this a form of economy-wide (covering all sectors), inter-sector (covering two or more sectors but not all) or occupational (across several sectors) bargaining?

In some sectors

If Yes. Is this a form of national (covering all regions) or regional/territorial (covering only certain regions or geographical areas) bargaining?

National

If No. Is the union confederation engaged in cross-sector collective employment regulation (see briefing note for explanation)?

Not applicable

Type of membership

Voluntary

Is the union confederation directly consulted by the authorities in matters of cross-sector significance?

Yes

If Yes. Is the consultation carried out…

Within established tripartite structures

If Yes. Do consultations in matters of cross-sector significance involve this union confederation…?

...on a regular basis

Members

How many lower-level trade union organisations are affiliated to the trade union confederation?

134 (2012)

How many active members in employment does the union confederation have in total (directly or indirectly via its member unions)?

50,000

Please indicate/ estimate the union confederation’s density in terms of active members.

83%

Affiliations

To which international organisations is the union confederation affiliated?

ITUC

To which European-level organisations is the union confederation affiliated?

ETUC

Source of information

Trade union confederation official

Website: www.munkastanacsok.hu

EIRO national correspondent: Ildikó Krén

Table 7: Trade union confederation fact sheet: Democratic League of Independent Trade Unions (LIGA; Független Szakszervezetek Demokratikus Ligája)

According to its domain, does the union confederation potentially cover the entire economy (in terms of sectors)?

Yes

According to its domain, does the union confederation potentially cover all occupations among both blue-collar workers and white-collar workers?

Yes

According to its domain, does the union confederation potentially cover all forms and size classes of enterprises (for instance: public ownership, private ownership, multinationals, domestic companies, SMEs, etc.)?

Yes

According to its domain, does the union confederation potentially cover all regions of your country?

Yes

General information on the union confederation

Is the union confederation directly or indirectly (via its member unions) engaged in cross-sector collective bargaining?

In Hungary there is no such collective bargaining. However, there are national forums of interests reconciliation, in which LIGA takes part:

-NGTT

-OKÉT

-VKF

If Yes. Is this a form of economy-wide (covering all sectors), inter-sector (covering two or more sectors but not all) or occupational (across several sectors) bargaining?

Economy-wide

In the above-mentioned forums

If Yes. Is this a form of national (covering all regions) or regional/territorial (covering only certain regions or geographical areas) bargaining?

National

In the above-mentioned forums

If No. Is the union confederation engaged in cross-sector collective employment regulation (see briefing note for explanation)?

n/a

Type of membership

Voluntary

Is the union confederation directly consulted by the authorities in matters of cross-sector significance?

Yes

In the above-mentioned forums

If Yes. Is the consultation carried out…

Information not available (not provided by LIGA)

In the above-mentioned forums

If Yes. Do consultations in matters of cross-sector significance involve this union confederation…?

… on a regular basis

Members

How many lower-level trade union organisations are affiliated to the trade union confederation?

The confederation has both independent trade unions and union organisations as member.

There are 76 members in total

How many active members in employment does the union confederation have in total (directly or indirectly via its member unions)?

112,000 active members

Please indicate/ estimate the union confederation’s density in terms of active members.

Approximately 2.5%

Affiliations

To which international organisations is the union confederation affiliated?

ITUC, ETUC, TUAC

To which European-level organisations is the union confederation affiliated?

ETUC

Source of information

Trade union confederation official

Website: www.liganet.hu

EIRO national correspondent: Ildikó Krén

Table 8: Trade union confederation fact sheet: Forum for the Co-operation of Trade Unions (SZEF; Szakszervezetek Együttműködési Fóruma)

According to its domain, does the union confederation potentially cover the entire economy (in terms of sectors)?

No, only public services and central budgetary functions

Main sectors: teachers, the health sector, culture and arts, public administration, police

According to its domain, does the union confederation potentially cover all occupations among both blue-collar workers and white-collar workers?

Yes

According to its domain, does the union confederation potentially cover all forms and size classes of enterprises (for instance: public ownership, private ownership, multinationals, domestic companies, SMEs, etc.)?

No, only public sector enterprises and institutions

According to its domain, does the union confederation potentially cover all regions of your country?

Yes

General information on the union confederation

Is the union confederation directly or indirectly (via its member unions) engaged in cross-sector collective bargaining?

No, it is not possible in the Hungarian public sector to sign collective agreements at sectoral or cross-sectoral level

If No. Is the union confederation engaged in cross-sector collective employment regulation (see briefing note for explanation)?

Information not available

Type of membership

Voluntary

Is the union confederation directly consulted by the authorities in matters of cross-sector significance?

Yes. In the frames of such consultations is it possible to agree theoretically with the government, which agreements can lead to amendments on the concerning regulations/laws.

If Yes. Is the consultation carried out…

Within established tripartite structures

If Yes. Do consultations in matters of cross-sector significance involve this union confederation…?

There is no permanent system; it can be convened at any time for the initiative of any participant

Members

How many lower-level trade union organisations are affiliated to the trade union confederation?

3 (2012) lower-level organisations (with around 20 member trade unions in total), and 24 independent trade unions.

How many active members in employment does the union confederation have in total (directly or indirectly via its member unions)?

92,000 members (2012)

And inactive: 18,000

mothers on maternity leave and unemployed: 4,800

Please indicate/ estimate the union confederation’s density in terms of active members.

15%

Affiliations

To which international organisations is the union confederation affiliated?

ITUC

To which European-level organisations is the union confederation affiliated?

ETUC

Source of information

Trade union confederation official

Website: szef.hu

EIRO national correspondent: Ildikó Krén

3c Data on the cross-sector, peak-level employer associations

Table 9: Employer organisation fact sheet: Agricultural Employers' Association (AMSZ; Agrár Munkaadói Szövetség)

According to its domain, does the employer organisation potentially cover the entire economy (in terms of sectors)?

Yes

According to its domain, does the employer organisation potentially cover (directly or indirectly via its member associations) all (legal) forms and size classes of enterprises (for instance: public ownership, private ownership, multinationals, domestic companies, cooperatives, SMEs, etc.)?

Yes

According to its domain, does the employer organisation potentially cover companies in all regions of your country?

Yes

General information on the organisation

Is the employer organisation directly or indirectly (via its member associations) engaged in cross-sector collective bargaining?

Yes, indirectly

If Yes. Is this a form of economy-wide (covering all sectors), inter-sector (covering two or more sectors but not all) or occupational (across several sectors) bargaining?

Economy-wide

If Yes. Is this a form of national (covering all regions) or regional/territorial (covering only certain regions or geographical areas) bargaining?

National

If No. Is the employer organisation involved in cross-sector collective employment regulation (see briefing note for explanation)?

Not applicable

Type of membership

Voluntary

Is the employer organisation directly consulted by the authorities in matters of cross-sector significance?

Information not available

If Yes. Is the consultation carried out…

Information not available

If Yes. Do consultations in matters of cross-sector significance involve this employer organisation …?

Information not available

Members

The members of the employer organisation are… (multiple responses are possible)

Sectoral federations

How many member companies does the employer organisation have in total (directly or indirectly via its member associations)?

1,500 member companies

How many employees work in these member companies in total?

25,000 (2011)

Please indicate/ estimate the employer organisation’s density in terms of companies

1,500 (2011)

Please indicate/ estimate the employer organisation’s density in terms of employees employed by member companies

Information not available – it is not constant

Affiliations

To which international organisations is the employer organisation affiliated?

ILO

To which European-level organisations is the employer organisation affiliated?

CEE, EUREST

Source of information

Employer organisation official

EIRO national correspondent: Ildikó Krén

Table 10: Employer organisation fact sheet Hungarian National Federation of Consumer Co-operative Societies and Trade Associations (ÁFEOSZ-KÉSZ; Általános Fogyasztási Szövetkezetek és Kereskedelmi Társaságok Országos Szövetsége)

According to its domain, does the employer organisation potentially cover the entire economy (in terms of sectors)?

Yes

According to its domain, does the employer organisation potentially cover (directly or indirectly via its member associations) all (legal) forms and size classes of enterprises (for instance: public ownership, private ownership, multinationals, domestic companies, cooperatives, SMEs, etc.)?

Yes

According to its domain, does the employer organisation potentially cover companies in all regions of your country?

Yes

General information on the organisation

Is the employer organisation directly or indirectly (via its member associations) engaged in cross-sector collective bargaining?

Yes, directly

If Yes. Is this a form of economy-wide (covering all sectors), inter-sector (covering two or more sectors but not all) or occupational (across several sectors) bargaining?

Economy-wide/Inter-sector

If Yes. Is this a form of national (covering all regions) or regional/territorial (covering only certain regions or geographical areas) bargaining?

National/

If No. Is the employer organisation involved in cross-sector collective employment regulation (see briefing note for explanation)?

.

Yes

Type of membership

Voluntary

Is the employer organisation directly consulted by the authorities in matters of cross-sector significance?

Yes

If Yes. Is the consultation carried out…

Within established tripartite structures:

In the Consultative Forum of the Private Sector and the Government (Versenyszféra és a Kormány Állandó Konzultációs Fórumának (VKF)

In National Economic and Social Council ( Nemzeti Gazdasági és Társadalmi Tanács, NGTT)

Unilaterally:

In Kereskedelmi Ágazati Párbeszéd Bizottságnak

If Yes. Do consultations in matters of cross-sector significance involve this employer organisation …?

… on a regular basis

Members

The members of the employer organisation are… (multiple responses are possible)

Sectoral federations: Retail 3,000 companies (2010)

more than 5,300 companies (2010)

How many member companies does the employer organisation have in total (directly or indirectly via its member associations)?

Retail cooperative members (Coop) 3,000 companies (2010)

Others: 5,300 companies (Hotel, catering, retail) (2010)

How many employees work in these member companies in total?

No information available (the website only has information about the economic power of the organisation through their members.)

35,000 workers in Coop (http://www.hrportal.hu/c/regi-uj-elnok-az-afeosz-coop-szovetseg-elen-20111027.html)

8% of Hungarian overall sales in retail, 15% of sales in food retail

Affiliations

To which international organisations is the employer organisation affiliated?

Szövetkezetek Nemzetközi Szövetsége (SzNSz – ICA),

Fogyasztási Szövetkezetek Szövetsége (CCI),

To which European-level organisations is the employer organisation affiliated?

Szövetkezetek Nemzetközi Szövetsége Regionális Szervezete (EUROCOOP)

Source of information

.

All information was collected from the website and other background sources, but there was no contact with the organisation itself

Website: www.afeosz.hu, http://www.mvkepviselo.hu/archiv/2004/orvszerv2.htm

EIRO national correspondent: Ildiko Kren

Table 11: Employer organisation fact sheet National Federation of Agricultural Co-operatives and Producers (MOSZ; Mezőgazdasági Szövetkezők és Termelők Országos Szövetsége)

According to its domain, does the employer organisation potentially cover the entire economy (in terms of sectors)?

No

Only in the agrarian sector

According to its domain, does the employer organisation potentially cover (directly or indirectly via its member associations) all (legal) forms and size classes of enterprises (for instance: public ownership, private ownership, multinationals, domestic companies, cooperatives, SMEs, etc.)?

Yes

According to its domain, does the employer organisation potentially cover companies in all regions of your country?

Yes

General information on the organisation

Is the employer organisation directly or indirectly (via its member associations) engaged in cross-sector collective bargaining?

No, only in the agricultural sector

If Yes. Is this a form of economy-wide (covering all sectors), inter-sector (covering two or more sectors but not all) or occupational (across several sectors) bargaining?

Only in the agricultural sector.

MOSZ is the only employer organisation which signed the agricultural sectoral collective agreement.

If Yes. Is this a form of national (covering all regions) or regional/territorial (covering only certain regions or geographical areas) bargaining?

National

Its partner is the Agricultural, Forestry and Water Management Workers’ Trade Union (MEDOSZ)

If No. Is the employer organisation involved in cross-sector collective employment regulation (see briefing note for explanation)?

Not applicable

Type of membership

Voluntary

Is the employer organisation directly consulted by the authorities in matters of cross-sector significance?

Yes

MOSZ was a member of OÉT, today it is a member of NGTT

If Yes. Is the consultation carried out…

Unilaterally

OÉT was a tripartite body. In NGTT the government is not present, but 5 other representative sphere are members (economic, employees, civil organisations, sciences, churches)

If Yes. Do consultations in matters of cross-sector significance involve this employer organisation …?

… on an ad-hoc basis – in practice

… on a regular basis – in theory (there have been three meetings in 2012)

Members

The members of the employer organisation are… (multiple responses are possible)

Sectoral federations

Regional federations

Companies, co-operators

How many member companies does the employer organisation have in total (directly or indirectly via its member associations)?

62 direct members (2012)

How many employees work in these member companies in total?

No exact data. Estimated 30-40,000 (2012)

Please indicate/ estimate the employer organisation’s density in terms of companies.

estimated 10% (30-40% in sales volume in the agrarian sector)

Please indicate/ estimate the employer organisation’s density in terms of employees employed by member companies.

estimated 50%

Affiliations

To which international organisations is the employer organisation affiliated?

International Cooperative Alliance

To which European-level organisations is the employer organisation affiliated?

COPA-COGECA

GEOPA

Source of information

Employer organisation secretary

Website: www.mosz.agrar.hu

EIRO national correspondent: Ildikó Krén

Table 12: Employer organisation fact sheetNational Federation of Traders and Caterers (KISOSZ; Kereskedők és Vendéglátók Országos Érdekképviseleti Szövetsége)

According to its domain, does the employer organisation potentially cover the entire economy (in terms of sectors)?

No

Only commerce and HORECA

According to its domain, does the employer organisation potentially cover (directly or indirectly via its member associations) all (legal) forms and size classes of enterprises (for instance: public ownership, private ownership, multinationals, domestic companies, cooperatives, SMEs, etc.)?

No

Only Hungarian-owned self-employers and family entrepreneurs – belonging to micro, smalland medium-sized companies

According to its domain, does the employer organisation potentially cover companies in all regions of your country?

Yes

It has a national network with independent service offices in each county.

General information on the organisation

Is the employer organisation directly or indirectly (via its member associations) engaged in cross-sector collective bargaining?

Yes, directly

It is member of the Sectoral Social Dialogue Committees in Commerce and HORECA, and the Subsectoral Social Dialogue Committee of the Catering Sector

If Yes. Is this a form of economy-wide (covering all sectors), inter-sector (covering two or more sectors but not all) or occupational (across several sectors) bargaining?

Economy-wide

There are no sector-specific wage agreements. The wage minimum and the guaranteed wage minimum is a single national wage policy covering all sectors.

If Yes. Is this a form of national (covering all regions) or regional/territorial (covering only certain regions or geographical areas) bargaining?

National

KISOSZ is taking part in the national interest reconciliation system. At national level it participates in the VKF and at sectoral level in the Sectoral Social Dialogue Committees

If No. Is the employer organisation involved in cross-sector collective employment regulation (see briefing note for explanation)?

N/a

Type of membership

Voluntary

Is the employer organisation directly consulted by the authorities in matters of cross-sector significance?

Yes

If Yes. Is the consultation carried out…

Both

Within established tripartite structures

and

Unilaterally

If Yes. Do consultations in matters of cross-sector significance involve this employer organisation …?

… on a regular basis

Members

The members of the employer organisation are…

Regional/Territorial federations

How many member companies does the employer organisation have in total (directly or indirectly via its member associations)?

KISOSZ has 19 service offices in the counties and the capital; these offices manage their direct membership. Thus KISOSZ has 40,000 enterprises as indirect members.

How many employees work in these member companies in total?

There are no exact data available as the employment at micro businesses and SMEs, and also the membership is constantly changing. According to a recent survey (autumn 2012) there are about 250,000 employees.

Please indicate/ estimate the employer organisation’s density in terms of companies.

This ratio differs in the different counties. At the regionally operating traders and caterers it is 10-15%. However there are counties where the density approaches 20%.

Please indicate/ estimate the employer organisation’s density in terms of employees employed by member companies.

No data available

Affiliations

To which international organisations is the employer organisation affiliated?

UEAPME

To which European-level organisations is the employer organisation affiliated?

Employer representation in the EESC

Source of information

Employer organisation official

Website: http://www.kisosz.hu/

EIRO national correspondent: Ildikó Krén

Table 13: Employer organisation fact sheet: Hungarian Industrial Association (OKISZ; Magyar Iparszövetség)

According to its domain, does the employer organisation potentially cover the entire economy (in terms of sectors)?

No

Only agriculture and mining

According to its domain, does the employer organisation potentially cover (directly or indirectly via its member associations) all (legal) forms and size classes of enterprises (for instance: public ownership, private ownership, multinationals, domestic companies, cooperatives, SMEs, etc.)?

No

Multinational and public companies are NOT covered by OKISZ

According to its domain, does the employer organisation potentially cover companies in all regions of your country?

Yes

General information on the organisation

Is the employer organisation directly or indirectly (via its member associations) engaged in cross-sector collective bargaining?

Yes, indirectly

If Yes. Is this a form of economy-wide (covering all sectors), inter-sector (covering two or more sectors but not all) or occupational (across several sectors) bargaining?

Economy-wide

If Yes. Is this a form of national (covering all regions) or regional/territorial (covering only certain regions or geographical areas) bargaining?

National

If No. Is the employer organisation involved in cross-sector collective employment regulation (see briefing note for explanation)?

Not applicable

Type of membership

Voluntary

Is the employer organisation directly consulted by the authorities in matters of cross-sector significance?

Yes

If Yes. Is the consultation carried out…

Within established tripartite structures

If Yes. Do consultations in matters of cross-sector significance involve this employer organisation …?

… on a regular basis

Members

The members of the employer organisation are… (multiple responses are possible)

Sectoral federations

Regional federations

How many member companies does the employer organisation have in total (directly or indirectly via its member associations)?

1,951 (2010)

How many employees work in these member companies in total?

27,415 employees (excluding self-employed people, 2010)

Please indicate/ estimate the employer organisation’s density in terms of companies.

No information received

Please indicate/ estimate the employer organisation’s density in terms of employees employed by member companies.

No information received

Affiliations

To which international organisations is the employer organisation affiliated?

UEAPME

European Association of Craft, Small and Medium-sized Enterprises

Source of information

Employer organisation official

Website: www.okisz.hu

EIRO national correspondent: Ildikó Krén

Table 14: Employer organisation fact sheet: National Federation of Craftsmen Boards (IPOSZI; partestületek Országos Szövetsége)

According to its domain, does the employer organisation potentially cover the entire economy (in terms of sectors)?

No information about the statutory regulation, but in fact mainly crafts/artisans businesses: services, processing and transport

According to its domain, does the employer organisation potentially cover (directly or indirectly via its member associations) all (legal) forms and size classes of enterprises (for instance: public ownership, private ownership, multinationals, domestic companies, cooperatives, SMEs, etc.)?

No information about the statutory regulation, but in fact mainly SMEs

According to its domain, does the employer organisation potentially cover companies in all regions of your country?

Yes

General information on the organisation

Is the employer organisation directly or indirectly (via its member associations) engaged in cross-sector collective bargaining?

Information not available, not member of VFK but participates in NGTT

If Yes. Is this a form of economy-wide (covering all sectors), inter-sector (covering two or more sectors but not all) or occupational (across several sectors) bargaining?

Economy-wide

Type of membership

Voluntary

Is the employer organisation directly consulted by the authorities in matters of cross-sector significance?

Information not available, but participating in NGTT

If Yes. Is the consultation carried out…

Within established tripartite structures

If Yes. Do consultations in matters of cross-sector significance involve this employer organisation …?

… on an ad-hoc basis

Members

The members of the employer organisation are…

Regional/Territorial federations: 220 regional craftsmen's corporations in 20 county associations

Companies: 279 legally independent craftsmen's corporations

National – professional: 39 national professional craftsmen's corporations

How many member companies does the employer organisation have in total (directly or indirectly via its member associations)?

A total of 50,000 individual entrepreneurs and business companies (2011) 60,000 companies are represented (2012)

How many employees work in these member companies in total?

1–10 employees/ company

200,000 employees, 6,000 apprentices, and 110,000 assisting family members

Affiliations

To which European-level organisations is the employer organisation affiliated?

Kis- és Középvállalkozások Európai Szövetségének (UEAPME)

Professional organisations:

European Construction federation Európai Építőipari Szövetségnek (EBC) Európai Fémipari Uniónak (EMU)

Source of information

Employer organisation official

Website: www.iposz.hu

EIRO national correspondent: Ildikó Krén

Table 15: Employer organisation fact sheet: Confederation of Hungarian Employers and Industrialists, Business Hungary (MGYOSZ; Munkaadók és Gyáriparosok Országos Szövetsége)

According to its domain, does the employer organisation potentially cover the entire economy (in terms of sectors)?

No, the agricultural sector is not covered

According to its domain, does the employer organisation potentially cover (directly or indirectly via its member associations) all (legal) forms and size classes of enterprises (for instance: public ownership, private ownership, multinationals, domestic companies, cooperatives, SMEs, etc.)?

Yes

According to its domain, does the employer organisation potentially cover companies in all regions of your country?

Yes

General information on the organisation

Is the employer organisation directly or indirectly (via its member associations) engaged in cross-sector collective bargaining?

Yes, directly

If Yes. Is this a form of economy-wide (covering all sectors), inter-sector (covering two or more sectors but not all) or occupational (across several sectors) bargaining?

Economy-wide

If Yes. Is this a form of national (covering all regions) or regional/territorial (covering only certain regions or geographical areas) bargaining?

National

If No. Is the employer organisation involved in cross-sector collective employment regulation (see briefing note for explanation)?

N/a

Type of membership

Voluntary

Is the employer organisation directly consulted by the authorities in matters of cross-sector significance?

Yes

If Yes. Is the consultation carried out…

Within established tripartite structures

If Yes. Do consultations in matters of cross-sector significance involve this employer organisation …?

… on a regular basis

Members

The members of the employer organisation are…

Sectoral federations

Regional federations

Companies

How many member companies does the employer organisation have in total (directly or indirectly via its member associations)?

around 6,000 (2013)

How many employees work in these member companies in total?

1.2 million (2013)

Please indicate/ estimate the employer organisation’s density in terms of companies.

Please provide the most recent figure available here and indicate the year of reference in brackets.

Please indicate/ estimate the employer organisation’s density in terms of employees employed by member companies.

40% of all employees in Hungary

To which international organisations is the employer organisation affiliated?

BIAC (OECD), IOE (ILO),

To which European-level organisations is the employer organisation affiliated?

BUSINESSEUROPE

Source of information

Employer organisation official

Website:hvg.hu/cimke/MGYOSZ

EIRO national correspondent: Ildikó Krén

Table 16: Employer organisation fact sheet: National Association of Strategic and Public Utility Companies (STRATOSZ; Stratégiai és Közszolgáltató Társaságok Országos Szövetsége)

According to its domain, does the employer organisation potentially cover the entire economy (in terms of sectors)?

No

Only public utilities

According to its domain, does the employer organisation potentially cover (directly or indirectly via its member associations) all (legal) forms and size classes of enterprises (for instance: public ownership, private ownership, multinationals, domestic companies, cooperatives, SMEs, etc.)?

No

Only large enterprises

According to its domain, does the employer organisation potentially cover companies in all regions of your country?

Yes

General information on the organisation

Is the employer organisation directly or indirectly (via its member associations) engaged in cross-sector collective bargaining?

Yes,

In some fields (like road transport, railways, post) directly

If Yes. Is this a form of economy-wide (covering all sectors), inter-sector (covering two or more sectors but not all) or occupational (across several sectors) bargaining?

Only public utilities

If Yes. Is this a form of national (covering all regions) or regional/territorial (covering only certain regions or geographical areas) bargaining?

National and regional

If No. Is the employer organisation involved in cross-sector collective employment regulation (see briefing note for explanation)?

N/a

Type of membership

Voluntary

Is the employer organisation directly consulted by the authorities in matters of cross-sector significance?

Yes

If Yes. Is the consultation carried out…

Within NGTT

If Yes. Do consultations in matters of cross-sector significance involve this employer organisation …?

… on a regular basis

Members

The members of the employer organisation are… (multiple responses are possible)

Companies

(and one organisation)

How many member companies does the employer organisation have in total (directly or indirectly via its member associations)?

34 directly (approximately 10,000 indirectly)

How many employees work in these member companies in total?

More than 100,000 directly (and approximately 60,000 indirectly)

2012

Affiliations

To which international organisations is the employer organisation affiliated?

CEEP

To which European-level organisations is the employer organisation affiliated?

CEEP

Source of information

Employer organisation managing director

Website/other secondary sources:

http://www.stratosz.hu

http://www.dafeszk.hu/page.fcgi?rx=&nyelv=hu&menuparam5=4&menuparam_7=3&type=7

EIRO national correspondent: Ildikó Krén

Table 17: Employer organisation fact sheet: National Association of Entrepreneurs and Employers (VOSZ; Vállalkozók és Munkáltatók Országos Szövetsége)

According to its domain, does the employer organisation potentially cover the entire economy (in terms of sectors)?

Yes

According to its domain, does the employer organisation potentially cover (directly or indirectly via its member associations) all (legal) forms and size classes of enterprises (for instance: public ownership, private ownership, multinationals, domestic companies, cooperatives, SMEs, etc.)?

Yes

According to its domain, does the employer organisation potentially cover companies in all regions of your country?

Yes

General information on the organisation

Is the employer organisation directly or indirectly (via its member associations) engaged in cross-sector collective bargaining?

Yes, indirectly /in some sectors directly

If Yes. Is this a form of economy-wide (covering all sectors), inter-sector (covering two or more sectors but not all) or occupational (across several sectors) bargaining?

In some sectors it is expressly sectoral

If Yes. Is this a form of national (covering all regions) or regional/territorial (covering only certain regions or geographical areas) bargaining?

National

If No. Is the employer organisation involved in cross-sector collective employment regulation (see briefing note for explanation)?

N/a

Type of membership

Voluntary

Is the employer organisation directly consulted by the authorities in matters of cross-sector significance?

Yes

If Yes. Is the consultation carried out…

Mainly unilaterally,

In the frames of the Sectoral Social Dialogue Committees

If Yes. Do consultations in matters of cross-sector significance involve this employer organisation …?

… on a regular basis

Members

The members of the employer organisation are…

Sectoral federations

and

Companies

How many member companies does the employer organisation have in total (directly or indirectly via its member associations)?

53,000

How many employees work in these member companies in total?

There are no exact data available for the organisation

Affiliations

To which international organisations is the employer organisation affiliated?

IOE, BIAC

To which European-level organisations is the employer organisation affiliated?

EUROCOMMERCE

Source of information

Employer organisation official

Website: www.vosz.hu

EIRO national correspondent: Ildikó Krén

4. Inter-associational relationships

4a Inter-union relationships

4a.1 Please list all trade union confederations covered by this study whose domains overlap.

ÉSZT – SZEF – Liga – MSZOSZ – ASZSZ – MUNKÁSTANÁCSOK

4a.2 Do rivalries and competition exist among the trade union confederations, concerning the right to conclude collective agreements and to be consulted in public policy formulation and implementation?

There are rivalries primarily among MSZOSZ and SZEF on the one hand and LIGA on the other. These can vary depending on the political climate. Currently, LIGA is on the ‘winners’ side’; before 2010, when the national-conservative parties took the helm it had been SZEF and MSZOSZ. ÉSZT, the small ‘professional organisation’ keeps away from confrontations in public.

The rivalries are at two levels: first, there is of course rivalry for the members. Trade unions can hardly boast of growth at the moment. The organisation rate is decreasing, a shift in the weight of an organisations may be mainly caused by a branch or a section leaving an umbrella organisation and joining another one. For years LIGA has benefit from this. In 2009 the main union of the electricity sector, EVDSZ quit ASZSZ and switched over to LIGA. A year later, part of the health workers union (ÉDDSZ) switched over from SZEF to LIGA (and quickly left the confederation again). Both are large unions and their move influenced the balance of power among the organisations.

Secondly there are rivalries for political influence and for the state subsidies linked to it. ASZSZ catapulted itself from the political arena with its rather clumsy tactics and currently they seem to slowly loose weight as a confederation. This is the effect of the tactics of the current government which reached that MSZOSZ, LIGA and MUNKÁSTANÁCSOK made an agreement in December 2011 about accepting the new labour code and renounced further protests against it. At the same time it was also agreed that an industry policy committee would be established but only with three trade union organisations– ASZSZ not included. The official explanation, that ASZSZ has only very few members in the industry, is understood by many observers as a simple pretext. Much more likely is that ASZSZ was not ready to sign the agreement about the labour code. The work in the committee is associated with a lot of money so the rivalry could also be about the distribution of funds.

Constructive cooperation has taken place for almost two decades between ÉSZT and SZEF (they also have an agreement on SZEF representing ÉSZT in the European activities).

There are no rivalries to Munkástanácsok, as they are very small and known as closed to right-wing Christian groups/parties.

4a.3 If yes, are certain trade union confederations excluded from these rights?

The present government announced in 2011 their plans to replace OÉT with a National Economic and Social Council (NGTT) as of January 2012. Members of the NGTT are unions and employers, but also representatives of business chambers, social and scientific civil organisations as well as Hungary’s historical churches. There is regular participation from the government’s side, but at the council’s plenary sessions ministers participate as observers.

In 2011 another forum was formally established, VKF, where three employers’ organisations and only three trade unions (LIGA, MUNKÁSTANÁCSOK and MSZOSZ) are supposed to consult about industrial policy. ASZSZ has not been made a member of the forum (see point 4a/2). ÉSZT’s and SZEF’s exclusion is more reasonable, as these confederations are more active in the public sector than the industrial sector.

4b Inter-employer association relationships

4b.1 Please list all employer associations covered by this study whose domains overlap.

VOSZ-STRATOSZ

IPOSZ-KISOSZ-OKISZ-AFEOSZ

MOSZ-AMSZ

4b.2 Do rivalries and competition exist among the employer associations, concerning the right to conclude collective agreements and to be consulted in public policy formulation and implementation?

There are no rivalries concerning the right to conclude collective agreements, but there are some rivalries concerning the right to participate in VFK. The same problems emerged as described in the trade union section, above: participation in former the OÉT was connected with gaining financial resources. When the government scrapped the OÉT this financial source dried up. Those organisations that gained the right to participate in the VFK are again receiving finances from the state budget. IPOSZ, KISOSZ, OKISZ and STRATOSZ are excluded and have been experiencing serious financial problems. MGYOSZ has undertaken several initiatives to establish an umbrella organisation of all employers’ organisations, but in vain.

4b.3 If yes, are certain employer associations excluded from these rights?

IPOSZ, KISOSZ, OKISZ, STRATOSZ – see above

But all nine employer organisations participate in the NGTT

4b.4 Are there cross-sector employer associations which refuse to recognise the trade unions and refuse to enter collective bargaining?

No

5. The system of collective bargaining

5.1.a Estimate the national economy’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 economy).

Cross-sectoral collective agreements do not exist in Hungary. The only kind of agreement is the – with some exceptions – annually agreed level of minimum wage increase (as described above). But this is not a collective agreement in a legal sense. Until 2010 the government was legally obliged to implement the agreed percentage into legislation, since 2012 the VFK consults and the joined proposal is discussed in the NGTT. The government is no longer obliged to accept the proposed percentage or even frame, when determining the following year’s increase.

The minimum wage is valid for all employees in all sectors and regions of Hungary, this means 3.8 million people.

There is also a minimum agreement for the public sector, consulted each year within the KIET with the related ministry on the one side and the trade unions participating in SZEF and ESZT and with the non-regular members LIGA and MSZOSZ.

5.1.b Estimate the national economy’s rate of collective bargaining coverage adjusted for those parts of the economy which are excluded from the right to collective bargaining (i.e. the ratio of the number of employees covered by any kind of collective agreement to the total number of employees in the economy minus those excluded from the right to collective bargaining).

Civil servants (including government servants) have restricted rights to collective bargaining – altogether around 100,000 people.

The armed forces are excluded from collective bargaining (police: around 48,000, army: around 29,000)

5.2. Illustrate the relative importance of cross-sector agreements, sectoral agreements and single-employer agreements both in terms of:

  • The percentage of the total number of employees covered;
  • The existence of centralisation/coordination rules and mechanisms concerning the level of wage increases and/or the different topics treated at the various levels (cross-sector, sectoral, and single-employer levels).

There are no cross-sectoral agreements in Hungary (see above 5.1.a)

There are only a few sector-wide collective agreements binding approximately 11% of all workers. Those sectoral agreements have been agreed by bipartite social dialogue committees (ÁPBs). The following agreements were valid in 2012: Construction industry; hotel, restaurant and catering sector; electricity sector. There is a legal dispute ongoing about the collective agreement in the bakery sector.

Bilateral agreements at cross-sectoral level were signed in 2012: LIGA Trade Union signed an agreement on mutual trust with the VOSZ employer organisation in July 2012. They agreed on cooperation and consultation for the sake of workplace peace and developed labour relations on companies’ level.

Liga later signed an agreement with the STRATOSZ employer organisation in September 2012. The general framework agreement ensured LIGA shop stewards could gain access to workplaces that are members of STRAOTOSZ to arbitrate work-related conflicts.

Also in September 2012 Liga signed a mutual agreement with IPOSZ which ensures regular consultation between the social partners.

However, these agreements are not collective agreement but joint statements on mutual trust and willingness to cooperate even outside the traditional tripartite structures.

5.3a. Is there a practice of extending multi-employer agreements to employers who are not affiliated to the signatory employer associations? Does it apply to both cross-sector and sectoral agreements?

Sectoral collective agreements can be extended by law. In Hungary there are in fact two levels of collective bargaining and collective agreements. One is the sector level: Sector agreements can be negotiated and signed by representative employer associations on the one side and trade unions on the other side. Since 2004, the so-called Sectoral Social Dialogue Committees (Ágazat Párbeszéd Bizottság, ÁPB) are being established. Currently, the social partners have established or signed agreement or made a declaration to establish such committees in about 29 sectors (or sub-sectors). These committees have the right to negotiate collective agreements and other agreements for the sector concerned. The sectoral agreements are registered at the Ministry concerned. Some of the agreements are extended to the whole branch; others are only valid for the companies affiliated to the employers association. Extended collective agreements are in catering, electric energy, bakery and construction sectors. The last extension was in 2006 in the construction sector.

As there is no cross-sectoral agreement, there obviously cannot be an extension of such agreements. Minimum wage is valid for all employment contracts, but it is no longer part of collective negotiation with the government.

5.3b. If there is a practice of extending collective agreements, is this practice pervasive or rather limited and exceptional? Is there any difference between cross-sector and sectoral agreements?

These are rather limited and exceptional; even their future is not secured yet.

Cross-sectoral agreements are not usually signed in Hungary.

6. Statutory regulations of representativeness

6a Statutory regulations of representativeness for trade union confederations

Criteria of representativeness in the private sector:

Pursuant to the new Labour Code, the trade union has the right to conclude a collective agreement if the number of trade union member employed by the employer reaches ten percent of the total number of employees of the employer. (Labour Code 2012&1, § 276 (1)).

A Trade union confederation shall be entitle to conclude a collective agreement if at least one of its local trade union branch members meets the requirement, that the membership of workers at one employer reaches 10 percent (3)

For the purposes of this rule, the average statistical headcount of the employees employed in the six months preceding the conclusion of the collective agreement is considered. If no trade union would meet this expectations the works council is allowed to negotiate collective agreements. But as the labour code is new, there are no data about the outcome of this new regulation.

Criteria of representativeness in the public sector:

There is a governmental decree about the representativity of a trade union in the pulic sector. The union has to prove its number of members (in some cases with name and workplace of each member), after a difficult pre-procedure a committee decides whether a single trade union is representative.

Law 1992/XXXIII determines in section 6 a the representativeness in the public sector:

Regional/ local representativeness: 10% of all employees

Sectoral level: 10%, but in some cases (depending on the employer structural situation): 20%

National level: at least three Trade union affiliates from the public sector and 5% of all public sector workers.

6a.1 In the case of the trade union confederations, do statutory regulations exist which establish criteria of representativeness which a union confederation must meet, so as to be entitled to conclude collective agreements at cross-sector level? If yes, please briefly illustrate these rules and list the organisations which meet them.

That is not the case for the private sector, as the freedom of association which is generally a basic right allowed workers in companies to establish a trade union organisation (as a legally independent entity on request of 10 employees) A trade union confederation can sign a collective agreement at a company if it has a member organisation which fulfils the above requirement. (Labour Code: 2012/1.276§2)b,).

Each company’s union can affiliate to a union at the sectoral level or directly to a cross-level union upon decision of their members.

In the public sector there is a rule that bargaining on cross-sectoral level is possible if a union has at least three trade union affiliates from the public sector and 5% of all public sector workers as members. (Law: 1992/XXXIII, § 6, (4)

6a.2 In the case of the trade union confederations, do statutory regulations exist which establish criteria of representativeness which a union confederation must meet, so as to be entitled to be consulted in matters of public policy and to participate in tripartite bodies at cross-sector level? If yes, please briefly illustrate these rules and list the organisations which meet them.

There is no such a regulation in use. Participation in VKF is signed in a letter of commitment; participation in NGTT is a customary right.

6a.3 Are elections for a certain representational body (e.g. works councils) established as criteria for trade union representativeness at cross-sector level? If yes, please report the most recent electoral outcome for the sector.

No, in 1992 the basis of participation in cross-sectoral consultation within tripartite interest reconciliation was the result of the first country-wide election for the employees’ representation in the self-governments for the social security system. Later it was discussed extensively whether work council elections should be a criterion for participation in cross-sector consultation as well as in sectoral consultation, but in fact the organisations participating in cross-sectoral tripartite consultation did not change until 2010, when the VFK was established.

Participation in cross-sector level consultation happens by customary right and special invitation by the governmental body. Cross-sectoral bipartite consultation takes place on an ad-hoc basis. LIGA Trade Union signed a letter of commitment with some employers’ organisation with the goal of negotiating on a bipartite level.

6b Statutory regulations of representativeness for employer organisations

6b.1 In the case of the employer organisations, do statutory regulations exist which establish criteria of representativeness which an organisation must meet, so as to be entitled to conclude collective agreements at cross-sector level? If yes, please briefly illustrate these rules and list the organisations which meet them.

According to the country’s Labour Code, an employer may conclude one collective agreement with trade unions at a given company or institution.

No legal criteria exist for employer organisations to conclude collective agreements. Consequently, a form of voluntary collective bargaining takes place, based on the parties’ mutual recognition. In practice, however, the by-laws of employer organisations 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 organisation.

6b.2 In the case of the employer organisations, do statutory regulations exist which establish criteria of representativeness which an organisation must meet, so as to be entitled to be consulted in matters of public policy and to participate in tripartite bodies at cross-sector level? If yes, please briefly illustrate these rules and list the organisations which meet them.

For the extension procedure, representativeness rules, similar to those for trade unions (see 6b.1), are set by law. According to these criteria, employer organisations that are considered as representative are those showing the most significance in terms of their membership number, economic importance and the number of employees covered,. Participation in VKF is signed in a letter of commitment; participation in NGTT is a customary right.

6b.3 Are elections for a certain representational body established as criteria for the representativeness of employer associations at cross-sector level? If yes, please report the most recent outcome for the sector.

No

7. Commentary

We would like to highlight some remarkable aspects concerning the cross-sectoral representativity in Hungary:

1. In classical understanding there has been nearly no bipartite collective bargaining existing and there are no bipartite collective agreements concluded in Hungary. Consultation about cross-sectoral issues had been undertaken mainly in tripartite forum.

2. Representativeness has been always a sensitive issue for the trade unions. Once in 1992 determined in a country-election, it has not been proofed seriously since. The same six trade unions were recognised by the governments and employer organisations and determined within this system politics in Hungary. The rules for sectoral and national representation for taking part in consultative bodies were established in a draft bill in February 2006 (HU0602101F) but in 2008, the constitutional court in its ruling found that the law is not in line with the country’s Constitution; however, no further amended bill has yet been submitted. Therefore, sectoral representativeness rules are still based on a 2004 national agreement between the social partners, which laid down the criteria and established a special committee to decide which organisations should be deemed representative (HU0501105F). The situation on employer side is even more deregulated. There never existed rules for measuring the representativity of employers organisation. The participation of nine employer organizations in cross-sector consultation seems to be eventually. Some of the employers identify themselves as sectoral organisations (see above in the factsheets) but consulted on cross-sector issues.

3. Rules for national representativity of trade union confederations do not exist. There is only a kind of customary right, which was changed one-sided by the government in 2011/2011 and since that only three out of six trade unions are invited to consultation in VKF. The change in 2010/2011 effected also the employer organisations. For the same unknown reasons only three of nine remained in the consultancy body VKF and there has not been an explanation from the government which were the criteria. (The NGTT, where all 15 social partners are invited to participate is not a cross-sectoral consultation forum in its academic meaning.)

As noted by trade union and employer organisation representatives during the research for this study, the weak cross-sectoral bargaining system has been weakened even further by the changes and closures initiated by the government since 2010 within the legal and customary environment in which consultation takes place.

Ildikó Krén, Solution4.org

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