Social Dialogue in Hungary Ferenc Rabi Budapest 13 September 2012

The National Interest Reconciliation Council was set up in 1989, it had its last meeting on December 2, 2010 (6 trade union confederations, 9 employer organisations) The Act on interest reconciliation at confederation level (2009. LXXIII) was in force for one year, it has been repealled recently The National Economic and Social Council had its inaugural meeting on October 11, 2011 Social Dialogue in Hungary at national level

The National Economic and Social Council (NGTT) Description: It is a five-sided reconciliation forum, the government is not a member, It is a five-sided reconciliation forum, the government is not a member, Its members are:  Industrial (employer) side  Employee side  NGOs  Churches  Representatives of science

It will replace the National Interest Reconciliation Council (OÉT), the Economic and Social Council and the Economic Interest Reconciliation Forum, It will be a body consulting on economic policy, on budget and on public health, It is suitable for discussing strategic issues, however, it will not be a forum for reconciliating steering processes, A tripartite reconciliation forum was established in the privat sector in February 2012 A tripartite reconciliation forum was established in the privat sector in February 2012 The National Economic and Social Council

Standing Consultative Forum of the Industry and the Government (VKF) it is a standing consultative forum of the government and the representatives of the employer and worker organisations members of the Forum - besides the government – are the National Association of Entrepreneurs and Employers (VOSZ), Confederation of Hungarian Employers and Industrialists (MGYOSZ), the Hungarian National Federation of Consumer Co-operative Societies and Trade Associations, the LIGA Trade Unions, the Works Councils (MOSZ) and the National Confederation of Hungarian Trade Unions (MSZOSZ) – it is not a full representation – the participants have been invited by the government Objectives of VKF are:  Strengthening co-operation between interest representatives and government,  promoting economic development,  improving competitiveness,  developing business environment, and  strengthening social dialogue within the industry.

National Interest Reconciliation Council of the Public Sector (OKÉT) Members of OKÉT OKÉT is a tripartite forum. Its sides are: representatives of the Government, negotiating groups  of national trade union confederations representing mainly public servants in several areas and professions of the public sector working related to legal relations and uniting several sectoral or professional unions (trade union federation) having the right to participate in the national reconciliation and  of national interest representatives of local governments

Sectoral Social Dialogue in Hungary Project of the PHARE Programme in 2001 Sectoral Social Dialogue Committees were set up in Hungary in 2003 The document signed by the social partners and the government on September 22, 2004 is still in force and it is the framework for the conditions and order of the activities of the Social Dialogues. 2009: „Parliament Decision on sectoral social dialogue committees and on certain issues of intermediate level social dialogue” (Act LXXIV)

The new Act on Sectoral Social Dialogue Stipulations of the Act 2009/LXXIV „On sectoral social dialogue committees and on certain issues of intermediate level social dialogue : In the dialogue can participate those representatives of workers interest (trade unions) which aa) have representatives in at least ten different companies and cover one percent of the workers ab) have representatives in at least three different companies and cover ten percent of the workers ac) are supported by five percent of the workers as a result of the elections of works councils in at least three different companies in the given sector. BDSZ is representative : in the mining sector, in the light industry as the only trade union, in the electricity representing 25,3 % together with EVDSZ

b) those employer organisations ba) the members of which – having the main activity in the given sector – employ at least five percent of the workers in the given sector or bb) the members of which represent at least 40 percent of the employers having their main activity in the given sector Employer partners of BDSZ are: - Hungarian Mining Association (mining sector) - Association of the Hungarian Light Industry (light industry) - Employers' Association of Electricity Companies (electricity) The new ACT on Sectoral Social Dialogue

Monitoring Committee of Sectoral Participation It supervises the legitimacy of setting up or ceasing a Sectoral Social Dialogue Committee the sectoral representativity the sectoral extention of collective agreements 30 Social Dialogues have been set up (19 sectoral, 9 sub-sectoral, 2 others), with the participation of 79 organisations (43 employer, 36 worker)

Council of Sectoral Social Dialogues (ÁPBT) and its Committees ÁPBT: the minister or his delegate, workers of the SSDC and the employers – it is a tripartite body. ÁPBT: the minister or his delegate, workers of the SSDC and the employers – it is a tripartite body. Mission: to provide an institutional framework for the co-ordination necessary for its functioning – adopting of principles (information, consultation, initiatives, declarations). Mission: to provide an institutional framework for the co-ordination necessary for its functioning – adopting of principles (information, consultation, initiatives, declarations). Activities: tripartite plenaries, meetings of bodies, committees (Financial Committee, Bureau, Experts’ Body) Ad Hoc Committees (except for the VET Working group). Activities: tripartite plenaries, meetings of bodies, committees (Financial Committee, Bureau, Experts’ Body) Ad Hoc Committees (except for the VET Working group).

Department of Social Partnership The Ministry of Social Affairs and Labour decided to establish the Centre of Social Dialogue from January 1, It has been transformed: It is an organisation integrated into the National Labour Office. Its responsibilities are among others: financial support of the sectoral social dialogue (30 SSDCs, 22 units to be financed, a budget of 120 Million HUF / year) financial support of the sectoral social dialogue (30 SSDCs, 22 units to be financed, a budget of 120 Million HUF / year) supporting activities of SSDCs by experties and translation/interpretation supporting activities of SSDCs by experties and translation/interpretation

„Agreement” declaring the setting up of the Committee: 7/5/2003 The Ministry of Employment acknowledged the setting up on 2/7/2003 Approval by the Monitoring Committee: 29/11/2005 and 19/1/2010 Employer side : Hungarian Mining Association (member of the Hungarian Industry Federation MGYOSZ participating in NGTT, and of the European employer associations EUROMINES, EURACOAL, IMA, UEPG, and of SDCEI ). Trade union side : Union of Mining, Energy and Industrial Workers BDSZ (member of the Hungarian Trade Union Confederation MSZOSZ participating in NGTT, of the European Indusrty Federation EMCEF, and of SDCEI). Social Dialogue in the Mining Sector

Objectives : exploration and reconciliation of the interests and intentions of workers and employers in the sector, concluding agreements reflecting their common position, changing information, checking suggestions and alternatives. Thus, all issues affecting the sector have been discussed, including economy, employment and issues influencing the wages, drafts of regulations. Mission : to provide an institutional framework for the consultations between employer and worker organisations. Activity of the Committee: in plenary meetings or upon request in working groups discussing comments submitted in writing. Objectives and mission of the Social Dialogue in the Mining Sector

Activities : Opinions on the energy policy concept crucial for the future Opinions on the energy policy concept crucial for the future Discussion and evaluation of the amendment of Act XLVIII/1993 on mining and its implementing Regulation 203/1998 (XII.19.) and of various regulations and actual issues Discussion and evaluation of the amendment of Act XLVIII/1993 on mining and its implementing Regulation 203/1998 (XII.19.) and of various regulations and actual issues Co-operation in deregulation processes Co-operation in deregulation processes Development of common position on climate change Development of common position on climate change Evaluation of the „National Allocation Plan 2008 – 2013, ” Evaluation of the „National Allocation Plan 2008 – 2013, ” Demonstration of employment impacts Demonstration of employment impacts Agreements concerning closure of mines Agreements concerning closure of mines Projects Projects Preparation and follow-up at national level of the decisions of SDCEI Preparation and follow-up at national level of the decisions of SDCEI

Challenges Closure of mines Closure of mines Staff cutbacks Staff cutbacks Outsourcing Outsourcing Crisis Crisis Behavior of the new employers Behavior of the new employers Pension problems Pension problems

Conclusions Legal frameworks and institutions are in place, Legal frameworks and institutions are in place, Different results achieved in the Social Dialogues, Different results achieved in the Social Dialogues, Social partners are strong (mining and electricity), common actions and strong lobbying are successful, Social partners are strong (mining and electricity), common actions and strong lobbying are successful, Common surveys and projects have been implemented, however,... Common surveys and projects have been implemented, however,...

Agreements are needed Because of the lack of dialogue, the Hungarian Government was called upon to start meaningful negociations by the 12th Congress of ETUC in Athens at its closing session on May 19, 2011 Because of the lack of dialogue, the Hungarian Government was called upon to start meaningful negociations by the 12th Congress of ETUC in Athens at its closing session on May 19, 2011 instead of formal dialogue genuine agreements should be concluded within the institutional framework, this is the place for consultation instead of formal dialogue genuine agreements should be concluded within the institutional framework, this is the place for consultation

Thanks a lot for your attention !