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Ferenc Rolek, vice president of the National Association of Entrepreneurs and Manufacturers (MGYOSZ), told MTI that the current round of salary negotiations will be important and difficult, as evidenced by the presence of László Palkovics, the Minister of Innovation and Technology. who will participate in the other conciliations.
He said about the employer’s position, in consultation with affiliated companies and organizations, that in the current precarious situation, it is not appropriate to increase the minimum wage and the guaranteed minimum wage as of January 1. Rather, it is proposed that the negotiations be postponed to a later date, when they will see more of the 2021 process, as they currently do not see a realistic opportunity to increase the minimum wage starting on January 1.
He recalled that the 2020 wage deal, which saw an 8 percent increase in the minimum wage and a guaranteed minimum wage, was based on the fact that inflation, productivity, and lower employer contributions would support the wage increase. from the side of the fountain. By comparison, this year’s economic data shows that this 8 percent wage increase had no origin because, although the social contribution tax fell 2 percentage points and inflation fell 3 percentage points, the productivity index fell 5 percentage points.
All this means that employers have implemented an 8% salary increase from zero sources, said the vice president of MGYOSZ, who said that they therefore propose that future wages, if possible, be decided not now, but after knowing the economic processes of 2021..
Imre Palkovics, president of the National Association of Workers’ Councils (MOSZ), as a representative from the employee side, told the MTI that a salary increase of around 10 percent had been proposed, taking into account the average salary growth measured in recent years and the inflation rate. However, he said, signaling to employers that they were willing to compromise due to the economic impact of the coronavirus epidemic.
From a trade union point of view, the hearing revealed that Hungary lags behind neighboring countries – Visegrád 4, Romania – in terms of wages, so it will be necessary to reduce this gap in wage increases.
In response, Ferenc Rolek said that Hungary is not lagging behind its neighbors. He believed that, in terms of purchasing power parity and in proportion to GDP, Eurostat figures show that the country is roughly at an average level in the region. To clarify the situation, he asked Minister László Palkovics to assess exactly where Hungary stands on the basis of international comparative statistics. Salary negotiations will resume in two weeks.
Cover image: Getty Images
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