Budapest Public Transport Company (BKV) CEO Gyula Varszegi on Wednesday signed a document cancelling the company’s collective contract with unions because it contains provisions that are "unsustainable because of BKV’s strained material position and the lack of financing for its operation", BKV said.
The collective contract was valid for an undefined period of time from the time it was signed early in 2010.
A clause in the contract allowed for its cancellation by either party, but the cancellation is effective only three months later, the BKV statement said.
BKV said it aimed to draw up a new collective contract that better fit the times as well as changes to labour rights.
Parliament is debating Hungary’s new Labour Code.