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Trade Union Density Factors in Hungary: Analysis and Challenges

Report detailing the factors influencing trade union density in Hungary, including positive and negative aspects, government overview, economic indicators, and challenges faced by workers and unions. Analysis of collective bargaining levels and future prospects.

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Trade Union Density Factors in Hungary: Analysis and Challenges

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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 2020.01.07.

  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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