Hungary: agreements at Audi and Mercedes to mitigate the economic consequences of the production stoppage

On 23 April, a new agreement was concluded between the Audi manufacturer and the independent Audi Hungary trade union (AHFSZ) that seeks to mitigate the economic consequences of the Covid-19 related production suspension, preserve employment, and maintain salaries. The social partners have agreed to convert part of the salary components provided for in an agreement signed on 18 March into additional leave periods. The agreement provided for an average increase of 36% in workers’ income over three years, and of which a 12.5% increase will apply this year. Audi Hungary stopped production on 23 March because of the coronavirus pandemic. Engine line production restarted on 14 April, and other engine production lines have recently resumed, albeit based only on one team and with strict health and safety measures. An agreement has also been signed with the Vasas and MTSZSZ trade unions at Mercedes-Benz, under which employees’ holiday pay will be reduced, depending on the pay band, in order to compensate for un-worked hours. Attendance bonuses for April will also not be paid. However, other elements of the wage agreement reached at the end of 2018 will be maintained, even after the partial restart. The trade unions at Mercedes-Benz are particularly pleased to have secured a solution that compensates for the production stoppage and yet avoids resorting to the possibility, as allowed by a recent reform, of extending the reference period for calculating working time to 24 months (c.f. article No.11832).