Hungary

Unions strike to defend benefits for workers and pensioners

Unions in the electricity are taking strike action against government proposals to end the arrangement that entitled them to cheaper electricity. The unions argue that the cuts will not just cause hardship for those at work but risk pushing those who have retired from the industry into poverty. Support for the action is up to 95% in some areas. EPSU has sent a message of support and called on the Hungarian prime minister to intervene and resolve the matter. Read more at > EPSU (EN)

Erosion of job security in public sector

The EIRO industrial relations observatory reports that major changes to legislation have meant that it will now be easier for the government to implement job cuts in the public sector. It will also mean that public service workers will lose severance pay if they obtain another job before the end of the notice period. Read more at > EIRO (EN)

4.5% for electricity workers

After the threat of strike action employers in the electricity industry agreed a 4.5% pay increase for 2006. Although ahead of inflation (currently around 2%) the deal acknowledges high productivity growth of around 10%. The deal also includes a minimum monthly salary for the industry of 63,500 HUF (240 euros).

Public sector pay deals

Public service employees are due to see their pay rates increase by 3% on 1 April this year while overall earnings should increase by 4.8% following negotiations in December. Inflation for 2006 is forecast to be 2%. Civil service pay rates will increase by as much as 5.1% from 1 April. Read more at > EIRO

Minimum wage increases agreed

The EIRO industrial relations observatory reports that the government and social partners have agreed new minimum wage rates including a new three-tier minimum wage system. For 2006 the government has recommended a 10.5% increase to HUF 63,000 (254 euros). The second rate for jobs requiring a vocational qualification will be 10% higher at HUF 70,000 and the third minimum wage rate will be another 10% higher at HUF 77,000 for jobs requiring a degree. The Ministry of Finance has also indicated the level of minimum wages up to 2010, with the lowest rising to 90,000. Union targets for the minimum are 60% of the average which is HUF 78,200 in 2006. Read more at > EIRO