Hungary

Zrece 25-27.Sept.2012.

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/

Data of TU density/organization rates/

Union members and organizations rate

2007 2008 2009 2010 2011 Organiz.

rate % (2012.)

Miners &

Light industry

22626 21418 19971 19833 19363 58

Builders

MOL

Metal 29.416 28.856 27.674 25.362 23.957 22,3

Chemical 28.900 28.200 29.700 29.800 30.600 45

Electricity

New members2007 2008 2009 2010 2011

Miners &

Light industry

700 650 520 940 750

Builders

MOL

Metal 1.372 3.003 2.297 1.979 1.937

Chemical 2520 2840 4750 3800 2705

Electricity

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 conditionsUnion services for their members.

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)

Basic information about Hungary

.

Parliament-Government2010: 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..

Population1990 2000 2005 2011

Population

(million)10,375 10.220 10.098 9.985

Births

(thousand

people)

12,1 9,6 9,7 8,8

Mortality

(thousand people)

14,0 13,3 13,5 12,9

Macroeconomic indicators

04/21/23

2008%

2009%

2010%

2011%

2012 I-VII%

Budget deficit(percentage of GDP)

-3,3 -3,6 -3,2 -2,9 -2,5 /planned/

GDP growth( annual average )

2,7 -6,75 1,2 1,7 -1,3

Inflation 6,1 4,2 4,9 3,9 6,0 (aug )

Unemployment 8,0 10,5 11.2 10,7 10,9

Real Earnings 0,7 -2,4 1,9 1,4 -3,6

Share of sectors in the industrial production, employment and wages

Product.

%

Employment

thous.peopl %

Gross/net wages

€ ( 1=280 HUF )

Mining, textile, garment, leather

1,8 74,8 8,6 Mining: 909 / 595

Light ind: 475 / 310

Construction 8,4 264 30,2 559

384

Oil-Gas / MOL / 8,3 6,1 0,7 ?

Metal industry 58,9 377.7 43,3 784

505

Chemical 15,4 112,2 12,9 1171

750

Electricity 7,2 38,1 4,36 1355

859

Main problems

Economic downturn / production-investment /Loss in Competitiveness (-12 ranks )Reduction in real wages ( changes in taxes,

inflation, income)Attack against 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, tuition

fee, increased migration)

The Hungarian economy has lost its impetus

A magyar gazdaság elvesztette lendületét

Társadalom is elvesztette esélyét…

Changes in Investments Year 2005 as average price

Investments in 2011-2012

8990919293949596979899

1. n.év 2. n.év 3. n.év 4. n.év

2011

2012

%

Industrial production

Ind. production domestic sales export sales

Construction

Construction (total) Buildings Other structures

EmploymentAlig dolgozunk arányaiban többen, mint a

válság mélypontján

Employment rate(15-64 years) Compared to the EU average: half a million fewer people

are working in Hungary

Kb. 500 ezer új munkahely, kb. 780 milliárd forint többlet állami bevétel, és 800 milliárd forint a dolgozóknál maradó pénz

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 cause higher social disadvantages too!

Increase in workers’ poverty

Due to low wages and rising prices, even workers with jobs get poorer.

2 adults +2 children

Estimated family income ( with guaranteed minimal wage )190 000 HUF= 678 €

Poverty line :2 adults + 2 children 243.429 HUF, = 869 €

-53 000 HUF=

-189 €/month

Changes in consumer prices /jan-july

Average infl.: 5,8%, food products:7,5%, fuels:8,2 %, energy: 6,9 %

The objectives of trade unionsSupport for collective bargaining/ wage negotiationsProtection of rightsMember Retention and recruiting of members.Training, education.Involvement of young peopleSupport for cooperation between Works Councils and

EWCs.Future:

Restoration following the Orban government / rights, dialogues /

Strengthening cooperation among industrial unions ( merger )

Collective Bargaining

Levels of Collective BargainingNational:

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 AgreementsRight of Works Councils : to conclude Works Agreements

Coverage by Coll.Agreements %

Sectoral Companies Employees

Miners *100 % 58 % 69 %

Builders

MOL

Metal no 65 % 81,4

Chemical More employers

90% 90%

Electricity

*Electricity industry and coal mining for energy industry

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

Results of wage negotiations 2012

wage negotiations

/ companies %Average growth %

Cafeteria growth %

Miners &

Light ind.

100 % *20 % ( gross)Reason: 80 % of the workers - earn around the minimum wage.

Appr. 4 % average

Builders

MOL

Metal 57 Expected by Government

(appr. 5%) +2,2

2-5 Tax 2011: 19 %

Tax 2012: 31 %

Chemical 80 8,6 17

Electricity

THANK YOU VERY MUCH FOR YOUR ATTENTION