Hungary: the automotive industry has a manpower shortage and is under pressure to raise wages

Several recent social movements have brought a new situation in the Hungary’s automotive industry to light, namely, manpower shortages are pushing employers to raise salaries and cooperate further with trade unions. A case in point is the Audi Gyor agreement, which may well become a benchmark for the region.
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Hungary, like the Czech Republic, Slovakia and Poland is one of the countries where automakers, for the most part German automakers (Audi, Mercedes-Benz, Opel) but not exclusively so (Suzuki) have set up vehicle production facilities destined for export. The auto sector is key for Hungary’s economy and makes up 30% of the country’s industrial production with almost 1,000 companies employing about 130,000 workers. In the last five years, monthly car production has doubled. However, as with other

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