Workplace representation and transposition of 2002/14/EC Directive in Hungary

1. Workplace representationandtransposition of 2002/14/EC Directive in Hungary András Tóth Institute of Politival Sciences, tothand@mtapti.hu

2. Structure of the presentation • Horizontal dual channel model of workplace representation • Legal regulation of information and consultation at the workplace before the transposition • Information and consultation in practice • Impact of transposition

3. Horizontal dual channel model of workpace representation • Socialist model: • - workplace union model • - exclusive union representation (bargaining agent and participation - representative of employees in the management) • -Union in practice human resource arm of the management

4. Democratic transition • Trade union crisis and no legitim union role (reformed unions lacking political legitimacy, new unions lacking membership legitimacy) • Institutional crisis: quest for ending the powerful positions of unions and for deregulation • Representativity crisis: increasing share of employees non-unionised

5. Principles of new institutional order (1990-1991) • Rule of law and market economy (deregulation) • Able to offer guideline for management with whom to negotiate • Harmonisation to European practices (Influence of German model)

6. Horizontal dual channel model • Political process: Hybridisation of German model to the Hungarian environment: horizontal dual model • Workplace union is the bargaining agent • Works council is the institution of consultation and information • Complimentary channels: • - sectoral bargaining (voluntary multi-employer bargaining) • - national level tripartite forum

7. Works council • At establishments above 50 employees (above 15 employees employee delegate)- [Central works council] • 3 years, 3-13 members, • Nominations of candidates: unions, or 10% of employees or at least 50 employees • President is full time at companies with 1000 or more employees • Shall be impartial in case of industrial action • Consultation and information body • Breach of consultation: invalidity

8. Consultation • plans by the employer concerning employment measures affecting significant group of employees, such as proposals concerning the reorganization or the transformation of the enterprise, or the conversion of an organizational unit into an independent organization, or privatization or modernization of an organizational unit; • proposals concerning the establishment of a system of personnel records, the range of information recorded, the contents of information requested by the employer or content of aptitude tests, and a human resources plan; • plans for employee training and proposals concerning the utilization of subsidies to promote employment and early retirement; • plans for measures aimed at the rehabilitation of employees whose working capacity has changed; • the plan for distributing annual leave; • the introduction of new methods of work organization and performance requirements; • drafts of internal rules affecting the essential interests of employees; • plans for awards announced by the employer involving material or honorary recognition.

9. Information • key issues affecting the employer's economic standing at least every six months; • projects for significant decisions concerning substantial changes in the scope of activities of the employer and its investments; • trends in wages and salaries, liquidity in so far as it affects wage payments, characteristics of employment, utilization of working time and characteristics of working conditions, at least once every six months.

10. Co-determination • Social fund(s) allocated by the collective agreement for social benefits

11. Workplace union • Bargaining agent: but is entitled to be consulted over issues affecting a major group of employees (at least 25% or 50) and recieve information necessary for collective bargaining • unions can require information from the employer in any issue that are connected to the economic and social interest of the employees within the frame of their employment, • unions have the right to present its view to the employer on his measures (decisions) or initiate consultation on this, • information and consultation rights in connection with labour safety issues. • Its bargaining status is tied to works council elections results (50% of votes for being able to conclude an agreement)

12. Tensions of the model at national level • Unions percieve the institution of works council as a device used to weaken unions. Their political agenda: weaken works councils and broaden statutory rights of workplace unions • Employers: Fine as it is, slight preference for works councils • Government (political parties): • - right wing: 1998: grant collective brangaining right to works councils in non-unionised workplaces (anti-union agenda) • - left wing: Fine as it is, slight preference for unions (repel of 1998 Act, 2002-2006: statutory broadening the rights of workpace unions in area of informaton and consultation

13. Working of the model at workplace level • Unwanted consequence: reinforcement of workplace unions (workplace unions „colonised” works councils) • Occasional tensions: • personal infights between two bodies representing the same group of employees • employers use works council to destroy union organisation efforts or de-legitimate functioning unions • Legal uncertanity (whom to consult and inform)

14. Impact of the transposition of the Directive 2002/14/EC • Definition of information and consultation • Refinement of procedure of information and consultation (15 day of correspondence and suspension of planned measure during the consultation period for 7 days) • Broadened the information and consultation statutory rights of trade unions in case of no works council at the establishment (union is entitled to recieve information and to be consulted over the issues covered by the Directive.

15. The state of representation of employees • Survey of companies above 50 employees in 2002 (2600 repsondent out of 5700 companies): • Above 250 employees: 84% • Between 100-250 employees: 52% • Between 50 and 100 employees: 27% • 91% of companies had both union and works council, 9% of companies had only works council • State owned: 85% • Privatised: 58% • Greenfield: 31%

16. Tensions of the system • Still need for social and organisational learning • Contradictory expectations • Lack of societal consensus concerning role of workers’ representation • Weakness of unions (lack of support)