Unions want to revisit wage agreement in light of higher growth

Banking

Photo by Liptak Robert / Shutterstock.com

Trade unions want to renegotiate the scale of minimum wage rises for next year in light of higher than expected economic growth, a union leader told state news wire MTI after talks with employers on Wednesday.

Image: Liptak Robert/Shutterstock.com

Melinda Mészáros, who chairs unions association Liga, said GDP growth, productivity and inflation were all higher than expected this year, grounds for re-negotiating the planned minimum wage rise.

The VKF, a forum of employers unions and the government, agreed a year earlier to raise the minimum wage for skilled and unskilled workers by 8% in both 2019 and 2020. The wage rise was part of an earlier agreement reached between the sides pairing wage growth with payroll tax cuts.

Ferenc Rolek, who heads employersʼ association MGYOSZ, said negotiating next yearʼs wages is difficult without the Finance Ministryʼs latest macroeconomic projections for 2020, which it has promised to deliver by December 20.

He added that the government had nixed employersʼ requests to move forward payroll tax cuts to the start of the calendar year from July 1, citing fiscal reasons.

ADVERTISEMENT

Századvég raises GDP forecast to 7.8% Analysis

Századvég raises GDP forecast to 7.8%

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

New editor-in-chief at Betone Studio Appointments

New editor-in-chief at Betone Studio

Budapest leaders make public transport free for under-14s City

Budapest leaders make public transport free for under-14s

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.