Minimum wage: there may be pressure on the Hungarian government that you haven’t seen before



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The decision on the level of the minimum wage and the guaranteed minimum wage in 2021 can take even until the end of the year. Although no specific positions have been outlined, there is no doubt that the parties do not want to agree. The government has indicated that it will be more active in the negotiations than usual, and businessmen believe that next year there could be another reduction of 2 percentage points in the soco. Meanwhile, the largest union is already looking towards the new European minimum wage directive.

Neither tactics nor deliberate delays are behind the negotiations on the 2021 minimum wage being launched later than usual by the Permanent Consultation Forum on Competition and Government (VKF), although it has not happened before that either party has a position until November. . The slippage is due to the crisis brought on by the epidemic and the uncertainty about the state and future of the economy, neither side feels they have enough information to start meaningful negotiations. – revealed by the participants interviewed by Napi.hu.

All of that appears to be that all three parties are thinking of a one-year deal, not a long-term one. At the request of the employer, substantive negotiations could begin after November 14 and an agreement is likely to be reached only by the end of the year.

The three employers’ associations within the VKF carry out research among the companies they represent, for example, in the current situation, what are their future plans in terms of personnel management, how their rotation is developing compared to the previously calculated , they think about salary evolution and, if so, what salary evolution they can imagine values ​​- listed Zsán Zoltán Szőke, president of the ÁFEOSZ-COOP Association.

Compared to previous years, we have now requested a large amount of data and factors. Above all, it is necessary to consider the carrying capacity of companies. The goal, of course, is to achieve a substantial increase, but it is not to force excessively high and centrally determined wages on companies to cut jobs or limit capacity.

The Ministry of Innovation and Technology has already indicated that

the government considers salary negotiations important for next year, so László Palkovics would like to attend these meetings in person, as many times as possible

– mentioned the president of ÁFEOSZ. There are signs that government involvement may be more active than usual, most recently in 2016, when Prime Minister Viktor Orbán himself initiated the conclusion of a six-year, medium-term salary deal and the cabinet put a package on the table. full reduction of public charge.

Faced with the epidemic, the social contribution tax (soco) was reduced again by 2 percentage points this year, although the level of real wage growth in the first quarter did not reach the 6 percent set as a condition for the tax cut. A decision will also be made on the “fate” of the 2021 soco-reduction, which is expected to affect the bargaining position on the employer’s side, in addition to inflation and GDP calculations. Employers have serious hopes that, given the epidemic situation, the soco may decline again next year, even though real wage growth will certainly remain below 6 percent, Zoltán Zőke said. The president also does not expect “shaky” negotiations, he hopes that the representatives of the union side will be realistic in the discussions.

Don’t have the minimum wage below 200 thousand!

So far, the three union confederations do not have a common position either. We don’t see it clearly yet the figures for this year and the forecast for next year. The Treasury has just cut its GDP growth forecast for 2021: expectations have been lowered from 4.8 percent to 3.8-4 percent and there is great uncertainty about next year’s inflation. The data needs more research, he explained. President of the Hungarian Trade Union Confederation (MASZSZ).

In addition to economic data, the association will consider two main indicators. On the one hand, increases in the minimum wage in the Visegrad countries. In the other three countries, the minimum wage in negotiation or already announced exceeds 200,000 HUF everywhere; In Slovakia, for example, the gross monthly minimum wage will be 623 EUR from 1 January (more than HUF 220,000). In our case, however, this still amounts to only 161 thousand guilders.

The other indicator is the new proposal presented by the European Commission for a framework to support the development of minimum wages at Member State level. This will be a mandatory directive in the future. The system defines the methodology to which the EU minimum wage must be linked: based on this, the minimum wage in Hungary cannot be less than 60 percent of the median wage and 50 percent of the median wage. Calculated in this way, the Hungarian minimum wage should also be above HUF 200,000. At the same time, he does not expect a double-digit minimum wage increase to be possible in 2021.

A complete change of attitude in the Union

Kordás emphasized that there is another very important pillar of the Commission’s proposal, namely that the wage agreement must be enforced through collective bargaining. In this context, it will be specified that in the Member States it is necessary to ensure that: 70 percent of all employees covered by collective agreements. (In Hungary, this rate can now be around 20%). This will include the task of drawing up an action plan for each Member State on how the 70% threshold will be reached and reporting annually to the European Commission on the progress of the process. If construction does not progress properly or is “sabotaged” by the government, an infringement procedure could be initiated against the country.

Under the directive, employer and trade union representations should be encouraged to develop capacities with EU funds so that they can conclude new collective agreements. That is, when unions are not present, they must be established and recruited with enough members to become representative so that they can legally enter into a collective agreement.

Today, however, the Cabinet is moving against this same trend. Among other things:

the Health Relations Law establishes that it is not possible to enter into a collective agreement in the sector. This may end in the future. If the Hungarian government introduces these types of rules, we will not reach 70 percent

said the president of MASZSZ.

There are no details yet on the resources that can be allocated. At the same time, according to László Kordás, the negotiations on this are of very high proportions: 1-2 percent of the subsidies from the European Social Fund to each member state will be spent on the implementation of the minimum wage framework.

According to the recent schedule, the framework will be discussed and approved in early summer. Thereafter, Member States will have two years to transpose the directive. During the discussion of the proposal, MASZSZ will make toughening proposals, especially in relation to the obligation to provide information and report. The aim is to ensure that, if a Member State fails to fulfill its obligations, the final decision can be taken through an expedited procedure, so that it is not embroiled in litigation lasting years. This is similar to the fast track process that the European Commission is trying to put into practice in the context of the rule of law mechanism that has just been adopted.

As a result of the system, the working environment in Hungarian workplaces is expected to be much better than at present and much more orderly conditions to develop. Additionally, employers who have so far been able to increase their profitability through undeclared work and circumvention of health and safety and labor standards may lose their competitive edge.



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