Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure HU-2020-31/1268 – Updated – measures in Hungary
|Country||Hungary , applies nationwide|
|Time period||Temporary, 01 August 2020 – 18 June 2022|
|Type||Bipartite collective agreements|
Supporting businesses to stay afloat
|Author||Nóra Krokovay (KOPINT-Tárki) and Eurofound|
|Measure added||08 October 2020 (updated 20 June 2022)|
Several large companies were reported to have terminated their collective agreements due to the impact of the COVID-19 crisis. Consequences included pay postponed to workers, layoffs or workers allegedly pressured into short-time work contracts. Other companies where similarly weakening collective agreement protections reportedly happened in Hungary were General Electric and tyre maker Michelin.
Steel maker Dunaferr reportedly terminated their collective agreement in August 2020, the Hungarian Alliance of Trade Unions (MASZSZ) said. The MASZSZ member Vasas trade union tried to re-establish talks regarding the terminated collective agreements, but with no success. Press reports said Dunaferr had not paid part of workers’ wages in September, citing COVID-19 losses as the reason.
At tyre maker Continental the collective agreement was terminated after workers were “tricked” and fired at its Makó (south Hungary) plant, the tyre industry trade union GSZSZ claimed. In other places, like General Electrics and tyre maker Michelin, the collective agreements were “suspended with guarantees”, trade unionists said.
The following updates to this measure have been made after it came into effect.
|15 June 2022||
Under government decree 705/2021 which amends decree 283/2020, the state of pandemic emergency was last extended until 18 June 2022.
Terminating collective agreements allows the employer to take measures at the company without consulting employee representatives and it also ends practices like paying certain bonuses or non-wage compensation, or observing special rules about sick pay and leave. The stipulations of the Hungarian Labour Code, amended in 2012, prevails when no collective agreement exists.
Employees in standard employment
||Does not apply to citizens|
Company / Companies
No special funding required
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
At Dunaferr the trade union Vasas threatened to go on strike to re-establish what they called “crushed” industrial relations at the company.
At Continental the trade union initiated talks but their proposals were not heard, according to the the TU representatives. At several plants they began to collect money for a solidarity fund for fired workers.
The MASZSZ member Vasas trade union tried to re-establish talks regarding the terminated collective agreements in a letter to the management sent on September 22. The trade union has threatened to go on strike if their demands were not met.
At Continental, the employer allegedly convinced workers to sign voluntary agreements on reducing their worktime and pay, promising that this would protect them from being laid off, the trade union said. The employer said they were doing all to keep people on at the Makó plant (south Hungary) and that 95% of workers voluntarily accepted the worktime and pay reductions. They added that the “plant was not always able to take advantage of the government measure for short-time work”.
This case is sector-specific (only private sector)
|Economic area||Sector (NACE level 2)|
|C - Manufacturing||C24 Manufacture of basic metals|
|C29 Manufacture of motor vehicles, trailers and semi-trailers|
This case is not occupation-specific.
Eurofound (2020), Collective agreement changes during COVID-19, measure HU-2020-31/1268 (measures in Hungary), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/HU-2020-31_1268.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.