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12 February, 2007
Following a two-hour warning strike by power-generating and distribution workers on 6 February, the government of Hungary came to a partial agreement with VDSZSZ over the government’s plan to eliminate discounted electricity tariffs for workers and retirees of the sector.
Further strikes were called off after VDSZSZ and the Ministry of Economic Affairs met on 7 February and agreed on a temporary plan to preserve the preferential tariff reductions. The union was scheduled to begin an eight-hour strike on 8 February, and then commence with a continuous strike beginning today, 12 February. A Budapest labour court had rejected management’s attempt to block the strikes, and ruled that the strikes would be legal.
The talks on 7 February produced the basis of a final agreement between the union and the government, scheduled to occur on 9 May. The Ministry of Economic Affairs guaranteed it would create a legal entitlement that allows electric industry companies to finance discounted fees for 20,000 sector employees and 43,000 retirees.
The government had proposed eliminating the subsidies, effective in July 2007, as part of the liberalisation of the electric industry.
“The main point of our agreement is that the discount tariff will remain in place in its present form until the full opening of Hungary’s electricity market,” VDSZSZ said in a statement. “We signed a preliminary agreement which must be followed by a final agreement within 90 days, and with the signing of this preliminary agreement, trade unions will suspend further strikes.”