Hungary: unions feel that the government gives insufficient representation for workers’ interests in the new bipartite forum on economic matters

Union concerns. The Governmental Decree [1054/2008. (VIII. 4.)] setting out the competences of GEF explicitly states that the establishment of the forum does not concern the activities of the tripartite National Interest-Conciliation Council (OÉT), that is the main consultative forum of the government in employment matters. From the nine national employers’ organizations represented in the OÉT, only two were given a seat in GEF.  Whereas from the trade union side only one member of the OÉT was granted a permanent observant status. Before the trade union side reached agreement on whether they will take part at the first meeting convened for August 28, 2008 some trade unions have already rejected the establishment of this new forum. They claimed that the activities of GEF can undermine the importance of OÉT and they expressed their fears that the establishment of this forum will strengthen the bargaining position of the business community in economic matters. They criticized the government for not providing sufficient representation for the employees in GEF and also because the government failed to consult them about the establishment of this new forum in advance. The Ministry for National Development and Economy claims that the activities of GEF will rather complement the work in OÉT since their activities focus on different areas. The purpose of this new forum is to further strengthen the dialogue with the government on economic issues, whereas OÉT will remain the main forum for consultation on employment matters. The trade unions eventually refused to take part at the first meeting of GEF on August 28, 2008. The subject of the first meeting was a new proposal of the prime minister for tax reform that was announced at the end of August.