1. MANAGING CHANGES IN EUROPE: INFORMATION AND CONSULTATION RIGHTS VS/2006/0242 Hungary

2. National report Analysis of the national/sectoral situation regarding information and consultation rights. The employer’s obligation to provide information before 2002 Directive 91/533/EEC Hungarian Labour Code

3. Industrial relations in 1990-2002 macro-level social dialogue in – the public sphere and – the sphere of competition; sectoral social dialogue; the system of collective bargaining and agreements; institutions of workers’ participation (works council, European works council); the institutional framework of resolving labour disputes, including methods of pressure – strike personal (individual) labour relations.

4. Legal regulation of industrial relations Labour Code Acts on the legal status of public employees and civil Servants

5. The system of national interest conciliation 1990-2006 I. OrganisationsDateInstitutional/leg al background CompositionSpecialised committee s Interest Conciliatio n Council (ÉT) 1990-1998Government Decree, backed by tripartite agreement Employers: 9 Trade Unions: 6 yes National Labour Council (OMT) from April 1999 Government Decree Employers: 9 Trade Unions: 6 yes Economic Council (GT) from April 1999 Government Decree Multipartiteyes, from the end of 2001

6. The system of national interest conciliation 1990-2006 II. Council for ILO Affairs from May 1999 Government Decree Employers: 9 Trade Unions: 6 no Council for European Integration from June 1999 Government Decree Employers: 9 Trade Unions: 6 no National Interest Conciliation Council (OÉT) from July 2002 Government Decree, backed by tripartite agreement Employers: 9 Trade Unions: 6 yes

7. Information and consultation rights: preliminaries of the transposition of the European Directive and its impact on industrial relations – 2002 The role of the National Conciliation Council: The social partners are entitled to information, consultation and co-decision: Information rights: economic, social and welfare issues; Consultation rights:legislation actions, annual budget, taxation, contributions, health and pension insurance.

8. Information and consultation rights: preliminaries of the transposition of the European Directive and its impact on industrial relations – 2002 Codetermination rights in connection with : rules of tripartite negotiations rules of procedure and operation of the Labour Mediation and Arbitration Service setting up an institution to promote sectoral interest conciliation drawing up recommendations rules relating to measures for economic reasons and affecting large groups of employees; setting the national minimum wage, the maximum limit of daily working hours and official holidays.

9. Specialised forums of the OÉT: The council for ILO matters (National ILO Council), and The council for sectoral social dialogue (Sectoral Council)

10. Specialised committees of the National Interest Conciliation Council Wage and Collective Agreements Committee; Economic Committee; Equal Opportunity Committee; Labour Market Committee; Labour Law Committee; Health and Safety at Work Committee; National Development Plan Committee; Vocational Training Committee; Social Welfare Committee.

11. Forums of national interest conciliation with equal representation of employers’ and employees’ organisations Management Board of the Labour Market Fund; Social Council; National Council for Regional Development, and its regional bodies National Council for Vocational Training; National Council for Adult Education, and Accreditation Board for Adult Education.

12. Members of the National Interest Conciliation Council (OÉT) Organisations representing employees Confederation of Professional Trade Unions Democratic League of Free Trade Unions National Confederation of Hungarian Trade Unions National Federation of Workers’ Councils Forum for the Cooperation of Trade Unions

13. Employers’ members of the National Interest Conciliation Council (OÉT) Union of Agrarian Employers National Federation Consumer Cooperatives National Association of Industrial Corporations – Chamber of Artisans National Federation of Traders and Caterers Hungarian Industrial Association National Federation of Agricultural Cooperatives and Producers Confederation of Hungarian Employers and Industrialist National Association of Strategic and Public Utility Companies National Association of Entrepreneurs In the government’s negotiating party, different ministries

14. Establishment of the Sectoral Council in 2001-2002 Interest conciliation at sectoral level 2001-2006 [1][1] Regulated by the Rules of Procedure of the Ministry of Employment and Labour Affairs 38/1 OrganisationDateInstitutional/legal background Compos ition Specialis ed committe es PHARE project “Strengthening autonomous social dialogue” From February 2001 Decision by the National Labour Council Sectoral CouncilFrom July 2002 Decision by the National Interest Conciliation Council Tripartit e Yes

15. Establishment of the Sectoral Council in 2001-2002 Interest conciliation at sectoral level 2001-2006 II. Secretariat of Sectoral Dialogue Committees From December 2003 Government decree TripartiteYes Council of Sectoral Dialogue Committees (SDCT) From September 2004 Government decree, backed by a tripartite agreement Tripartite 74 employers’ representatives, 80 trade union representatives from 34 Committees, Government representatives Yes Sectoral Dialogue Centre Kht. (independent legal entity) From April 2005 set up by the National Employment Foundation (OFA) on the recommendati on of the OÉT Tripartite

16. Sectoral Dialogue Committees 34 sectoral and subsectoral dialogue committees 154 organisations: 80 trade unions and 74 employers’ associations bipartite bodies medium-level forums composition and operation of SDCs

17. The activities of SDCs expert material and analyses organise conferences carry on negotiations with the aim of concluding collective agreements consultations with the government deliver opinions on the Action Plan for Employment and the National Development Plan preparation of the action plan for adult education proposals for regulations on labour leasing, amendments to the Acts on public purchasing, commerce and air-transport.

18. Industrial/labour relations at company level dual system at company level trade unions and works councils

19. Exercising information and consultation rights – the situation against the background of legal provisions in force in 2006 The transposition of the European Directive into the Labour Code entered into force on 20 March 2005 The Labour Code: Information and consultation – definitions Information and consultation with reference to trade unions Information and consultation with reference to works councils Conclusion of collective agreements protection of employees’ representatives protection of works council members Confidential information – the requirement of confidentiality

20. Social partners’ opinions on the transposition of the Directive – 2004 The employees’ side supported it The employers’ side did not support all the elements (reservations: the lengthened period of consultation, the lack of precision in the definition of business secret and the rules pertaining to the information to be provided for trade unions in the absence of a works council)

21. Further consultations generated by the Directive National Interest Conciliation Council – the social partners’ standing regarding requirements arising from the Directive – August 2005 proposal for a strategy for lifelong learning development of human resources Criticism of employees side (equal social and regional opportunities, strengthening social cohesion and increasing employment further) Criticism of employers’ side (better recognising the role of economic operators, employers’ organisations and professional associations)

22. National Interest Conciliation Council – the social partners’ standing regarding requirements arising from the Directive – August 2005 Employers recommended that the strategy should place greater emphasis on: the role of undertakings in vocational training; the tasks of employer/professional interest representations regarding social and professional cooperation; the modernisation of on the job training, the tasks of the development of vocational training in the medium and long term.

23. Further consultations within the OÉT – the social partners’ opinions regarding changes required by the Directive – September 2005 proposals for the amounts of fine imposed by labour inspection authorities proposal financing the operation of labour inspectorates OÉT discussed the draft amendment on the Labour Code and related laws. labour leasing (no consensus) unfavourable employment practices (labour leasing without proper registration or employment contract)- The employers’ side disapproved it., employee’s side accept it. government proposal relating to the definition of the criteria of regular industrial/labour relations

24. Consultations within the OÉT – November 2005 proposals for the amendments on bankruptcy proceedings, liquidation proceedings and dissolution government had adopted several trade union proposals (the wage guarantee scheme, trade union membership do not constitute a part of the bankruptcy assets) employee’s proposal: at an employer where there is no works council, the local trade union should nominate the employees’ representative on the supervisory board If there is no trade union either, the employees’ representative should be elected by at least 50% of the employees

25. The new framework of information and consultation rights after the transposition of the European Directive The impact of the transposition of the Directive on industrial/labour relations at national, sectoral and company level – January – November 2006 Hungarian government submitted bills to parliament on the National Interest Conciliation Council, the sectoral dialogue committees and other aspects of sectoral social dialogue in February 2006. General debates was suspended because of the upcoming general elections New discussion: on the November 2006 agenda.

26. National level Bill on the National Interest Conciliation Council criteria for trade union and employers' organisations interest representation, employers’ interests linked to employment relationship and their economic interests Participation in national interest conciliation Participation of the government the basic rules for OÉT’s operation The ministry responsible for social dialogue The aim of the amendments of the Labour Law The amendment on labour inspection

27. The most important aspects of the bill affecting the Labour Code it introduces the notion of sectoral interest conciliation and refers consultation on sector/subsector-specific issues of industrial relations and employment relationship to employers’ and employees’ sectoral interest-representation organisations; it allows consultation on job qualification schemes within OÉT; it makes it compulsory for the government to enter into yearly wage negotiations until September 31 at the latest; it requires the minister responsible for social dialogue to take the necessary steps to follow up OÉT agreements having legislative relevance.

28. Sectoral level Bill on sectoral dialogue committees and other aspects of medium- level social dialogue A brief summary: to develop a new framework for interest conciliation to facilitate consultation between social partners at sectoral level to promote collective bargaining to extend employers’ and employees’ possibilities to assert their interests The draft law specifies three levels of entitlement of sectoral dialogue committees : the right of consultation, the right of decision, and the rights made contingent on representativeness.

29. The most important parts of the draft law A collective agreement concluded within a sectoral dialogue committee, at the joint request of the two sides can be extended to apply to all employers falling within the sector by virtue of their main activity. labour inspection; decisions taken by public authorities within the framework of health and safety at work; decisions on the extension of collective agreements; decisions on the establishment of sectoral dialogue committees, participation in them and the rights exercised by them; decisions taken by labour authorities under the Act on employment promotion and provision for the unemployed; and review of decisions by taken social security authorities…”

30. Regarding sectoral social dialogue: In order to avoid exclusion, the draft law provides for sectoral social dialogue even in the case when the number of employers operating in a given sector is below the limit set (ten) for establishing an interest representation, or when – despite the verifiable initiative – establishment of an interest representation failed because the number of employers wishing to join it fell short of required limit. This provision is applicable in the event of the employers intending to establish an interest-representation organisation employ at least 80% of the workforce in the given sector.

31. Organisation responsible for the study Federation of the Chemical, Energy and General Workers’ Unions (VDSZ) Authors: Zsuzsa Kádár, György Paszternák, Rita Potápi, Mihály Tóth