Undeclared labour and social economies in hungary

1. Elemér Szentpétery Association of Nonprofit Human Services of Hungary Undeclaredlabour and socialeconomiesinhungary

2. Association of nonprofit human services of hungary

3. was registered on 26/10/1992. At present it is one of the largest Hungarian lobby umbrella organisations, which unites the civil and non-profit organisations that work in the field of human services and employment. The number of our member organizations is 120, but many of them functions as an umbrella organization as well, hence indirectly it provides almost 4500 organizations with its services all around the country. The quality management system of the Association was accepted with the certification of CERTOP Product and System Certification House on 19/05/2006. It was accredited as an adult education place (FAT) on 12/09/2007. Association of Nonprofit Human Services ofHungary (ANHSH)

4. TÁMOP 2.5.1.Fourth Partner – Regional Partnership Programme TÁMOP 5.5.3 IMPULSE TÁMOP 5.5.4. „HATYARIPE” „Help-net” supportedbythe National EmploymentFoundation Currentprojects

5. Undeclaredlabour

6. Construction Agriculture Catering Trade Textileindustry Households Highlyqualifiedemployees Affectedsectors

7. Undeclaredlabour is a problemaffectingthewholesociety. Wecanmake a distinctionamongstthree main groups: Enterprisesexplicitlyspecializedinillegallabour Personshavingvariousactivities, whodoesn’tdeclaresome of theiractivities. Jobseekerslackinganyincome, and areforcedintoillegallabourforvariousreasons, becauselegallabourmarketscan’tofferopportunitiesforthem. Affectedsocialgroups

8. Regardingseasonalworkplacements(construction,agriculture), emplyomentlevel of foreignworkers is significant, meaning 150-200 000, mainlyundeclaredillegalemployees • Abuse of theso-called „ad-hocemployee’sbook” is increasing • anomalieswithdeclaringpart-timeemployment Characteristics of thethirdgroup

9. Reasons • Unusedworkforce • Lowvalueonthelabour market • Lack of education • Lack of experience • Children • Unhealthiness • Disadvantegousresidence • Unrelibiality • Lack of motivation • Unsatisfieddemands • Uneconomicoperationinenterpiseform • Fewerconsumers • Lowliquidity • Shareddemand • barriers of local governemnts • financial • Human resources • Conflict of interests

10. Hungarian labour law shall apply to the employee withregard to the amount of the maximum working time and the minimum resting time, the minimum level of paid annual leave, the minimum wage, conditionsof occupationalsafety, recruitment and employment conditions for pregnant women and those caring for infants, as well as for young employees and the requirement of equal treatment. Labourlawprovisions

11. The Hungarian Labour Inspectorate is a central agency under the control of the minister of employment. - Its legal status, duties and competence are defined by the Government Decree No 295/2006 (XII.23). on the Hungarian Labour Inspectorate. Directinglaboursafetyissues Conciliation of interests Control of authorities- OMMF

12. Ways out

13. A socialenterprise is: An organizationwithprimarilysocialaims, whichinvestsitsprofitsforthegood of thesocietyorinorderofcommunitydevelopment A democraticallygovernedeconomicorganizationfoundedforactivitesnotundertakenbythegovernmentalsector, intheotherhandlackingtheprofitsnormallygeneratedby market actors Socialeconomy – communityenterprises

14. Criterions of communityenterprises Economic • Continousproduction, service providing • Highlyindependent • Significantfinancialrisk • Minimalpayedwork Social • Soldiarity • Stakeholder-attitude • Theory of one man, onevote • Limited profit sharing • Servingthecommunity • Voluntarywork • Good relations with local governments • Networking

15. Choosingthe right consumertargetgroup • Adequate service providingforthetargetgroup • Offeringnew, goodqualityand cheapproduct • Innovation • Professionality • Motivating and developingthelabourforce • Volunteers • More thanonepillars • Cooperationwithothersocialenterprises • Cooperationwith local governments • Graduallywideningmarkets Success-elements

16. Market • Supportfromthelabourmarkets • Financial organizationswithsocial and ecologicalorientation • Local funds, investmentclubs, localventure-capitalenterprises • Governmentsubsidies • Ethicalbanks • Corporatenetworks Finances

17. Regionális Civil Központ Alapítvány (recik) Kékmadár Alapítvány Csereháti Településszövetség Best practices

18. Spreading of socialenterprisesrelatestotwoproblems: increasingdemandsforsocial, human an communityservices, and thesearchfornewwaystocost-effectivelysatisfythesedemandsinthemiddle of budgetarycut-backs and taxdecreasing. AnotherimportantfactorwasthegreatincreaseinWestern-Europe’sunemploymentrates, and theformaleconomy’sinabilitytocreateworkplacesinadequatenumbers Hungary facedthesameproblemsafterthechangeinregime. Drasticaldecreaseinemploymentratesexcludeddisadvantaged, uneducated and unflexibleindividuals, most of themcouldn’treturntothelabourmarkets, includingyoungpeople. The unusedworkforceturnedit’sattentiontowardtheillegaleconomy…. Undeclaredlabour’sconnectiontosocialeconomy

19. 1132 Budapest Alig u. 12 Tel.:+36-1-270-0414 Fax:+36-1-270-0433 E-mail: nonprofit@humszolg.hu Web: humszolg.hu Thankyouforyourattention