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Public sector workers call of January strike

Hungary’s public sector workers have called off a strike planned for January 12, Prime Minister Ferenc Gyurcsány told the public radio on Friday morning.

Unions and government representatives negotiated until 4am, when state secretary at the Prime Minister's Office Gábor Csizmár sent a message about the agreement, Gyurcsány said.

Under the agreement, public sector employees who earn up to 180,000 a month will receive an extra HUF 10,000 a month as compensation for their annual bonuses - typically equivalent to a full month's wages - which are not to be paid in 2009 because of government austerity measures.

Most of the compensation will be covered by the HUF 100 billion already set aside for the purpose in the budget. But an additional HUF 20 billion for the purpose will have to be reallocated from other budget resources, Gyurcsány said. (MTI – Econews)