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Hungary

Hungary. Zrece 25-27.Sept.2012. Report by- affiliates of Industriall European TUs in Hungary. Mining and Energy Industry Workers' Trade Union / Min ers & Light industry / Building, Wood and Building Material Workers' Unions / Build ers / MOL Miners' Union / Oil & Gas / MOL /

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Hungary

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  1. Hungary Zrece 25-27.Sept.2012.

  2. Report by- affiliates of Industriall European TUs in Hungary • Mining and Energy Industry Workers' Trade Union / Miners& Light industry/ • Building, Wood and Building Material Workers' Unions / Builders/ • MOL Miners' Union / Oil & Gas /MOL / • Metalworkers' Trade Union Federation / Metal / • Hungarian Chemical, Energy and Allied Workers' Unions / Chemical / • United Federation of Workers' Trade Union of Electricity / Electricity/

  3. Data of TU density/organization rates/

  4. Union members and organizations rate

  5. New members

  6. The main factors influencing TU density /1/ • Positive: • Conscious and particular attention paid to the new, mostly large enterprises. • A trade union official capacity and commitment towards recruitment. • Number of employees in the workplace. • Factors affecting working conditions • Union services for their members.

  7. The main factors influencing TU density / /2/ • Negative: • Small, scattered plants of enterprises. • Agency work. • The workers' fear, belittling the trade union protection. • Negative attitudes of employers, the organization's founding executives may be put in a disadvantageous situation • Job losses, plant closures • Former members, officers retiring or leaving the company or the sector too. • Lack of interest of young people. • Competition among trade unions (membership fee)

  8. Basic information about Hungary .

  9. Parliament-Government • 2010: FIDESZ- Christian-Democratic Party 2/3 majority (68,1 % ) • Hungarian Socialist Party ( 15,8 % ) • Right wing ( Better ) ( radical ) 12,1 % • Politics Can Be Different (liberal ) 4,15 % Government of Viktor Orban: right wing populist „ Total offensive football” Attacks against: Constitution, pension system, tax system, reconciliation,social benefits, labor code, etc..

  10. Population

  11. Macroeconomic indicators 2014.09.08.

  12. Share of sectorsin the industrial production, employment and wages

  13. Main problems • Economic downturn/ production-investment / • Loss in Competitiveness (-12ranks) • Reduction in real wages (changes in taxes, inflation, income) • Attackagainst workers' rights (lack of interest reconciliation, new LC, flexibility without security) • Attack against union rights / strike right, LC / • Attack against institutions of democracy /(Constitutional Court, Media Law, new Electoral Law) • Attack against social welfare system ( unemployment- and social benefits, health care ) • Hopelessness of young people ( education, tuitionfee, increased migration)

  14. The Hungarian economy has lost its impetus • A magyar gazdaság elvesztette lendületét • Társadalom is elvesztette esélyét…

  15. Changes in InvestmentsYear 2005as average price

  16. Investments in 2011-2012 %

  17. Industrial production Ind. production domestic sales export sales

  18. Construction Construction (total) Buildings Other structures

  19. Employment • Alig dolgozunk arányaiban többen, mint a válság mélypontján

  20. Employment rate(15-64 years) Kb. 500 ezer új munkahely, kb. 780 milliárd forint többlet állami bevétel, és 800 milliárd forint a dolgozóknál maradó pénz Compared to the EU average: half a million fewer people are working in Hungary

  21. Regional differences • In Budapest, 15-64 years:62.6% of 1.17 million people are working. This is below the EU average! • In Northern Hungary: only 46.4%!!are employed! • Regional economic drawbacks causehigher social disadvantages too!

  22. Increase in workers’ poverty • Due to low wages and rising prices, even workers with jobsget poorer. Estimated family income ( with guaranteed minimal wage ) 190 000 HUF= 678 € 2 adults +2 children -53 000HUF= -189 €/month Poverty line :2 adults + 2 children 243.429 HUF, = 869 €

  23. Changes in consumer prices /jan-july Average infl.: 5,8%, food products:7,5%, fuels:8,2 %, energy: 6,9 %

  24. The objectives of trade unions • Support for collective bargaining/ wage negotiations • Protection of rights • Member Retention and recruiting of members. • Training, education. • Involvement of young people • Support for cooperation between Works Councils and EWCs. • Future: • Restoration following the Orban government / rights, dialogues / • Strengthening cooperation among industrial unions ( merger )

  25. Collective Bargaining

  26. Levels of Collective Bargaining • National: • National Economic and Social Council / instead of National Interest Reconciliation Council/ • Private Sector Standing Consultative Forum • Sectoral: • Sectoral Dialogue Committees • Company: • Right of Trade Unions: to conclude Collective Agreements • Right of Works Councils : to conclude Works Agreements

  27. Coverage by Coll.Agreements % *Electricity industry and coal mining for energy industry

  28. The main problems of CBA negotiations • Changes in Labour Code ( from July 1) • Earlier:the collective bargaining rights of the Union depended on the election outcome of Works Council / The Union had to at least 10 % of the total votes / • Now: The Union members must account for at least 10 % of the total employees of company. • More flexibility for employers. • Less benefits to the employees. • Rules for publicly owned companies are negatives in LC • Recession. • Tax and earning policy of the Government

  29. Results of wage negotiations 2012

  30. THANK YOU VERY MUCH FOR YOUR ATTENTION

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