Représentation sur le lieu de travail

Workplace representation in Hungary is provided by both local trade unions and elected works councils with the balance between the two varying over time. Currently unions have negotiating and some consultation rights. Works councils have information and consultation rights but in practice often find it difficult to influence company decisions.

Works councils, drawing heavily on the experience in Germany, were first introduced in 1992. However, they had fewer powers than in Germany and, to take account of the existing Hungarian situation, local workplace unions were left with some rights in the area of information and consultation. The right-wing government elected in 1998 swung the balance away from the unions towards the works councils. However, the socialist government elected in 2002 changed the situation again, removing the right of works councils to negotiate and increasing the consultation rights of local trade unions.

In practice there must be some doubt as to whether the difference has been as great is it appears. A survey published by a Hungarian researcher Bela Benyo in 2003 found that representation through works councils went hand in hand with a union presence. Only 9% of works councils were at workplaces without a union and 70% of works councils were either entirely made up of trade unionists or overwhelmingly made up of them. More recently the union confederation MSZOSZ noted in 2006 that “unions enjoy a far greater support at works council elections than the number of their members would suggest”.

Numbers and structure

The structure of the workplace trade union body depends on the rules of the union.

Works councils, which are entirely employee bodies, should be set up in any company or any part of a company operating independently with more than 50 employees. In companies or independent parts of companies with between 15 and 50 employees a works representative should be elected.

The number of works council members increases with the size of the workforce as follows:

In practice, figures from the 2004 labour force survey show that only one third of workplaces with more than 50 employees have works councils, although they are more common at larger workplaces.

The legislation does not say how often works councils should meet and most meet relatively infrequently. However, the law that says that the employer must provide the works council with information on a range of issues at least twice a year means that there should be at least two meetings a year.

Tasks and rights

The workplace trade union representatives have a range of rights, some of which overlap with those of the works council. However, now only the union has the right to negotiate collective agreements (see above).

The union workplace representatives must be consulted over major issues affecting employment, including job cuts and changes.

The union also has the right to intervene where it considers that employment rights have been breached. In these circumstances there is arbitration, which goes to the courts if it is unsuccessful.

The employer must provide the works council with information about the following issues: the basic economic situation of the employer (at least twice a year); about plans for important changes in activity and investments; about developments in wage and salary payments, the impact of these payments on the company’s cash position, the characteristics of the workforce, the use of working time and working conditions. The works council can ask for documents relating to these issues and more generally about concerns relating to the economic and social interests of the employees.

The employer must also consult the works council in advance about the following issues: plans for measures that will have an impact on a large number of employees, such as restructuring, outsourcing or privatisation; the introduction of systems to keep personal data on employees and the extent of data which is to be kept; training, including, measures to promote employment and prepare for retirement; rehabilitation for disabled workers; the annual holiday plan; new methods of work organisation and the setting of performance indicators; plans for works rules; tenders and competitions that have an impact on the employees. In all these cases the works council has 15 days to make its views known, although the employer is not obliged to accept them. However, if consultation between the two sides starts – in other words the works council responds to the employer’s proposals, the employer cannot go ahead with the proposals for least a further seven days. There are differing timings for consultation on large-scale redundancies and business transfers.

In practice, despite these rights, works councils have only a limited opportunity to influence company decisions. Information is often provided only at the meeting, giving the works council little opportunity to respond.

The works council decides jointly with the employer on the use of any funds, buildings or equipment for social purposes (holidays, canteens etc) which may have been agreed in collective agreements.

Election and term of office

The choice and term of office of workplace union representatives is an issue for the union. Works council members are elected in a secret ballot run by an election committee organised by the employees. The term of office is three years.

Protection against dismissal

Before a trade union representative can be dismissed or moved the employer must get the approval of the higher trade union body, to which the representative is responsible. The situation is similar for works council members.

Time off and other resources

Union representatives at the workplace are entitled to two hours per month release from normal duties for every three members at the workplace. If these hours are not taken up, the union can be compensated in cash, although only up to a maximum of half the available time. The union should also be given access to rooms on the premises for trade union activities.

Works council members are to be released from their normal duties for 10% of their monthly working time (15% for the chair of the works council. Chairs in companies employing more than 1,000 are completely released from their normal duties.) The employer should also pay for the necessary costs of the works council on a jointly agreed basis.

Representation at group level

A central works council can be set up if there are several works councils covering the same employer. Links between local union representatives depend on the union.