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16 February, 2000IMF affiliate in Hungary supports the railway unions' strike.
HUNGARY: After months of negotiations for a wage increase in the new collective agreement between the Hungarian railwaymen's unions and management of Hungarian Railways (MÁV), the talks ended in failure and the three representative unions for the railwaymen have been on indefinite strike since February 1, 2000. The IMF-affiliated Federation of Hungarian Metalworkers' Unions (VASAS), which is also affiliated at national level to the Confederation of Hungarian Trade Unions (MSZOSZ), has informed the IMF of the situation there and of its support for the railwaymen's struggle.
The unions want an annual increase in real wages of 2%-2.2%, which they consider realistic and justified if taking into account the country's economic growth. During recent years, and with Hungary's restrictive economic programme, productivity has increased considerably, the country's GDP has been growing at 4%-5%, and inflation has dropped. For the year 2000, the government has forecast a 5% increase in GDP and inflation at 6%. Unions also say their demands are in line with government recommendations that employers should devote half of their economic growth to improving wages and living standards.
A second fundamental cause for conflict has been that the unions are demanding conditions in the new collective agreement which would adequately protect workers' interests in the process of Hungary's radical railway reform.
The IMF has written to the Hungarian government and MÁV urging them to enter into a genuine social dialogue with the unions in order to reach a fair settlement.
(Note to readers: On February 18, the IMF was informed that the railway strike had ended, although problems such as the wage increase, redundancies and checkoff remain to be resolved. The three unions met to decide their future strategy and will initiate further discussions with management.)
The unions want an annual increase in real wages of 2%-2.2%, which they consider realistic and justified if taking into account the country's economic growth. During recent years, and with Hungary's restrictive economic programme, productivity has increased considerably, the country's GDP has been growing at 4%-5%, and inflation has dropped. For the year 2000, the government has forecast a 5% increase in GDP and inflation at 6%. Unions also say their demands are in line with government recommendations that employers should devote half of their economic growth to improving wages and living standards.
A second fundamental cause for conflict has been that the unions are demanding conditions in the new collective agreement which would adequately protect workers' interests in the process of Hungary's radical railway reform.
The IMF has written to the Hungarian government and MÁV urging them to enter into a genuine social dialogue with the unions in order to reach a fair settlement.
(Note to readers: On February 18, the IMF was informed that the railway strike had ended, although problems such as the wage increase, redundancies and checkoff remain to be resolved. The three unions met to decide their future strategy and will initiate further discussions with management.)