guest workers

Tens of thousands of guest workers cannot enter Hungary: large investments in trouble

Guest workers are crucial for a functioning Hungarian economy. Even the Hungarian government acknowledged that without Vietnamese, Philippine or Indonesian workers, the Hungarian economy would not be able to grow. Therefore, the Orbán cabinet plans to invite hundreds of thousands of guest workers, but paperwork was halted in January due to legislative deficiencies. As a result, large investments can be delayed in Hungary.

Hundreds of thousands of Hungarians seek employment abroad, lured by higher wages and superior working conditions in countries like Austria, Germany, and Great Britain. Despite government initiatives like “Come Home, youth!” enticing their return, many remain abroad indefinitely.

The underlying issue is structural, as Hungarian economic pundits often highlight. The Orbán cabinet’s strategy to attract low-value-added investments fails to entice most Hungarians working abroad. Consequently, Hungary relies heavily on foreign workers to fill crucial gaps in its labour force, with a significant portion hailing from non-EU countries, primarily Southeast Asia.

We wrote about that scheme in THIS article. In short, 25 Hungarian companies are “licensed” to acquire the needed documents for the guest workers. Válasz Online suggested last September that some of them are government-close, and the business generates a solid and calculable profit.

However, there is a problem now. A recent report by 444.hu underscores the bureaucratic logjam plaguing the processing of residency applications. From 1 January to 29 February, no new applications for interim, national,or EU residence cards could be submitted, disrupting the influx of guest workers. This hiatus also affected the evaluation of previously filed appeals, with exceptions made only for professional athletes.

The repercussions are profound, with 23,602 prospective guest workers stranded. The number of non-EU citizens working in Hungary is around 120 thousand, so 23 thousand is a considerable number. The largest group of foreign non-EU citizens working in Hungary are Ukrainians (approx. 40 thousand), Serbians and Vietnamese (16 thousand) and Philipines (10 thousand), portfolio.hu wrote.

Alternative solutions for guest workers

The Hungarian economy and the companies badly need the foreign workforce. Therefore, they tend to explore alternative solutions. According to telex.hu, some firms request a “C”-type business visa. That is regularly issued for foreigners travelling to Hungary for business negotiations or short-term missions, not for a Philippine guest worker to build walls and roofs on a construction site.

Another alternative is to do the paperwork in another EU country and transfer the worker to Hungary.

According to 444.hu, it is uncertain what will happen after 1 March. Guest workers will be able to submit the relevant papers after that date. However, the different ministries have conflicting interests, so the legal framework may not be ready by then.

That is because the interior, foreign and economic ministries do not agree on which nationalities should come to Hungary.

Consequently, multiple companies miss out on important deals. As a result, autumn plant inaugurations can be delayed since there is no workforce to build them.

The National Directorate-General for Aliens Policing told 444.hu that they aim to decide about the submitted appeals by 30 April.

Read also:

Guest workers cause problems at Hungary’s best-known spa – Read more HERE
Guest workers to drive buses between Budapest city centre and Budapest Airport? – Details in THIS article

February 7, 2024

Hungarian government introduces new law for companies with foreign workers

Under the Hungarian government’s proposed law, digital companies employing foreign workers could be granted a special status. The aim is to lure IT workers to Hungary; however, experts say the opposite could happen.

New Hungarian bill

According to the new bill proposed by the Cabinet Office of the Prime Minister, led by Antal Rogán, digital companies that employ more than 60 percent of foreigners from outside Europe would be granted special status in some areas of activity.

The ministry’s aim is to make Hungary more attractive in another sector, after the battery industry. In particular, companies that base their businesses on workers from outside Europe would be targeted. The Cabinet Office’s bill proposes a preferential tax regime for companies and their workers.

Under the draft legislation, these companies would be exempt from paying public charges and local business tax. The new system devised by the Rogán ministry would only be open to companies with a majority of workers from third-world countries, 24.hu reports.

The Prime Minister’s Office posted the text of the proposal on the government website in December 2023. It is not yet known when the government will decide. “The digital company form will help to expand employment in the high-tech field by leaps and bounds, as well as to create more attractive domestic conditions for Hungarian professionals working abroad in the high-tech field and to improve the competitive situation by enabling highly qualified foreign professionals to be employed in Hungary.”

Read also:

Not everyone likes it

The concept of a digital company would be created by law, if adopted. Private limited companies or public limited companies with a capital of at least HUF 20 million that enter into a contract with the competent authority could become a digital company. The law also specifies the main forms of activity.

As mentioned above, the main aim is to attract programmers and IT specialists to Hungary, as there is a shortage of them.

However, experts believe that it is the companies that employ cheap guest workers that stand to benefit. There are many activities that do not require programmers, but assembly and manufacturing, for which unskilled, cheap labour is suitable.

This is controversial, as the Hungarian government has just taken action to protect Hungarian jobs, following reports that several manufacturing companies are moving into Hungary and are laying off Hungarian workers while employing workers from the Far East.

January 30, 2024

Jobbik-Conservatives protests against import of guest workers

The parliamentary group of the opposition Jobbik-Conservatives party on Monday held a protest against the import of foreign guest workers to Hungary in front of the prime minister’s office in Budapest’s Castle District.

László György Lukács, the party’s group leader, said the import of “cheap Asian migrant workers” had picked up lately as the government was letting tens of thousands of guest workers into the country, where they carried out low-wage labour.

He said the government itself was partly responsible for financing the guest workers since its policies supported factories from the East setting up in Hungary, and such companies preferred to employ cheap labour from abroad instead of “valuing the well-trained Hungarian workforce”.

In effect, he added, the government was sponsoring a population exchange given that people struggling to find work in Hungary were forced to emigrate.

Meanwhile, the opposition Democratic Coalition party on Monday also expressed its support for paying Hungarian workers a proper wage rather than importing underpaid guest workers.

Foreigners replace Hungarian workforce in Hungary

Hungarian workforce replaced by cheaper foreigners

The Hungarian government launched a billboard campaign during the 2015 migration crisis, asserting that residents of third-world countries couldn’t snatch jobs from Hungarians. However, a reversal is now unfolding, caution trade unions, as foreign workers increasingly replace Hungarian counterparts across various sectors.

Despite Prime Minister Orbán and his government consistently linking migration supporters to terrorism, Hungary’s reliance on foreign labour shows an unstoppably upward trend.

Experts attribute this to structural issues within the Hungarian economy. Productivity stagnated in recent decades due to government backing of low-added-value investments such as car manufacturing and battery production. As Hungarian companies and workers integrated into the production chain at lower levels, high salaries became elusive. Consequently, numerous highly qualified and diligent Hungarians sought employment abroad, resulting in a significant labour shortage. Foreign workers began entering the Hungarian market en masse to fill this void.

Recently, the South Korean Bumchun scandal unfolded, where Hungarian workers were dismissed to make way for Vietnamese replacements, despite substantial government aid for the investment. Similar incidents occurred in Gyöngyös (B. Braun) with workers from the Philippines, and allegations emerged against the Continental plant in Makó, where supposedly 150 guest workers arrived from Indonesia, Szeretlek Magyarország wrote.

Read also:

Asian guest workers flood Hungary but Chinese, Korean plants may never start operation – Read more HERE
Companies in Hungary hunt for Philippines and Indonesians: they neither drink nor flee to the West – Details in THIS article

Unprecedented rise of xenophobia?

The typical pattern involves plant expansions utilising both Hungarian and foreign hired workforce, followed by the dismissal of Hungarian workers, facilitated by the flexibility of hired workers’ contracts.

Tamás Székely, chairman of a Hungarian workers’ union, highlighted instances where owners replaced Hungarian workers with foreigners, emphasising the detrimental impact on both plants and Hungarian workers. He expressed concern that such situations might trigger unprecedented xenophobia in Hungary.

Foreign workforce is not cheaper

Contrary to popular belief, employing foreign workers is not necessarily cheaper. Tibor Erzse, a labour expert, explained that it can be more expensive due to the need to provide housing, catering, etc. However, foreigners may be more motivated, working longer hours and accepting lower expectations regarding workers’ rights, safety and health protection.

Szeretlek Magyarország’s article contends that companies in Hungary find it more convenient to employ hired foreign workers, given the ease with which they can be dismissed. Moreover, the perception that foreigners work more efficiently and complain less facilitates the substitution of Hungarians with foreign workers, even in the medium term. While the government theoretically prefers the employment of Hungarian workers, thorough checks are often lacking.

Statistics indicate that 150 thousand Hungarians have signed contracts with temporary work agencies, highlighting the widespread nature of the issue affecting many Hungarian families.

Radical right-wing opposition advocates for a reconsideration of Hungary’s economic policies

The opposition party Mi Hazánk is strongly advocating for a profound reconsideration of Hungary’s economic policies.

János Lantos, the party’s labour spokesman, underscored this call during a press conference on Wednesday. Drawing on data that compared real household incomes between Hungary and Poland, revealing Hungary’s comparatively disadvantaged position, Lantos attributed this situation to the privatisations of the 1990s. He argued that these privatisations positioned the country as a provider of “global big capital,” while the present government’s focus on achieving “battery superpower status” had led to a reliance on importing guest workers. Lantos emphasised the urgent need for establishing an independent Hungarian national economy centred on domestic manufacturing, and called for a heightened recognition of Hungarian workers, both in moral and financial terms.

January 24, 2024

New Orbán cabinet restriction: you cannot work in 300 jobs in Hungary as a foreigner!

The Hungarian government banned foreign employees from more than 300 jobs in Hungary. Furthermore, they cut the possible number of guest worker residencies and work-based residency permits.

According to economx.hu, the Hungarian National Assembly decided to allow third-country nationals to work in Hungary only if they meet several conditions. For example, they forbade these people from working in almost 300 jobs in Hungary. Furthermore, they reduced the number of guest worker permits the government can issue in 2024.

Based on the relevant laws, the theoretical maximum of third-country employees is the number of vacant positions at the end of Q1. Based on the Hungarian Central Statistical Office, that should be 81 thousand for 2024. However, the Orbán cabinet decided to reduce that number to only 65 thousand.

Based on a statement of the Ministry for National Economy, in 2023, they issued only 39 thousand such permits. Furthermore, Hungarian authorities thoroughly checked all the people concerned.

Of course, EU citizens can come to Hungary to work in any jobs.

The Orbán administration created a list defining 300 jobs in which third-country guest workers cannot work in Hungary. Based on the ministry’s statement, some of these are the following:

roofer,
industrial alpinist,
toolmaker,
cultural organiser,
legal assistant,
photographer,
grape- and fruit farmer,
elevator repairman.

Labour shortage is significant in Hungary

The labour shortage is significant in Hungary. According to economx.hu, some Hungarian companies no longer search for Hungarian workforce but employ only foreigners. That is because the Hungarian population able to work continuously shrinks. Therefore, the Hungarian economy needs 30-40 thousand guest workers.

Of course, we should also consider the more than a million Hungarians who left Hungary after the country’s EU accession. If they were here, there would be no labour shortage but considerable unemployment. However, most of them do not plan to come home.

Moreover, there are lots of Hungarians who live in the Western counties (Győr-Moson-Sopron, Vas, Zala), but work in Austria. Their number reaches tens of thousands, but they do not contribute to the Hungarian economy.

Read also:

Staggering! Half a million guest workers in Hungary – Read more HERE
Hungarian parliament adopts law on guest workers – Details in THIS article

January 21, 2024

120 thousand guest workers in Hungary, Gyurcsány’s DK outraged – UPDATED

The opposition Democratic Coalition on Tuesday called for an immediate ban of the “unlawful import” of guest workers from outside the European Union.

DK’s Ferenc Varga, who sits in parliament as an independent, told a press conference that the law on guest workers which entered force this year was “a scam”.

In a recent interview, Sándor Czomba, the economy ministry state secretary in charge of employment policy, “admitted that 120,000 guest workers were imported from outside the EU”, the DK politician said, noting that the law stipulates that the number of guest workers must not exceed the number of unfilled jobs at the end of the previous year. According to 24.hu, 40 thousand guest workers came from Ukraine, 16 thousand from Vietnam, while 10 thousand from the Phillipines.

Central Statistical Office (KSH) figures show that in the third quarter of last year almost 80,000 jobs went unfilled, Varga said, insisting this meant that Prime Minister Viktor Orbán “and his people have unlawfully roped in 40,000 guest workers”.

He vowed to submit a written question to the government regarding how many guest workers would be imported to Hungary this year and why Hungarians were not given the jobs available.

Ruling Fidesz in response said that the DK party led by Ferenc Gyurcsany and the “dollar left” tried again “to mislead” Hungarians with their statements. Beside allowing illegal migrants and terrorism into Hungary, “they are now stoking up fear in Hungarians by talking about the import of illegal guest workers in the country,” Fidesz said in a statement.

It cited recent legislation which has tightened the protection of the employment of Hungarians, by setting a quota on the number of third country guest workers who can be employed in Hungary. “Their number in 2023 was 62,000 and this was never exceeded, as is required by law,” the party said, calling on DK “to stop misleading the public”.

Read also:

Hungarian workers train guest workers then get fired from Hungarian factory? – Read more HERE

January 9, 2024

Szeged residents outraged by Chinese company seeking property in Hungary

Residents in Szeged, Hungary, have been devastated by the news that the Chinese company BYD is to build a new factory within one of their residential gardens.

New Chinese factory BYD

The Chinese BYD factory has chosen Szeged to build its first European car manufacturing plant. Despite recent secrecy surrounding the project, an overwhelming majority of residents reportedly support this “environmental and industrial investment.”

However, contrary to the sentiments expressed by Szeged Mayor László Botka, a significant number of young adult families residing in Liliom Lakókert oppose the investment. One resident lamented, “This was meant to be a tranquil, family-oriented neighbourhood,” as quoted by telex.hu.

“Last Friday, three Chinese guys were here. They were drone-driving, and when I started talking to one of the neighbours, they came to ask about available houses for sale or rent,” shared a Szeged resident.

Szeged residents do not want a factory

Discontent among Szeged residents is evident, with many expressing “outrage that an industrial park is being built here, even though it could be on the other side of the motorway”. Having said that, others have no fundamental objection to the factory itself, as it would be a closed plant that would not disturb the peace and quiet of the residents.

However, the construction of the factory would involve an extension of the 502 bypass. Moreover, a four-lane road would run along a stretch of the end of the gardens, where there are now ploughs or empty plots. Consequently, it would inconvenience many residents.

The entire industrial park is slated to be situated on the urban side, with only a small section extending beyond the border, housing a railway terminal.

The purple will be the BYD, with the Lily Residential Garden visible at bottom right, with the continuation of Route 502 being built on the northeast edge. Although this will not be introduced into the housing estate, environmental impacts will be present (Photo: Szeged MJV Municipality)

Another polled resident said that she had not heard of the factory construction but only of a smaller industrial park project. While a couple with dogs complained about the increased noise in the area compared to a few years ago, questioning whether the vacant land would be developed later. They also raised doubts about battery production or other chemical activities occurring at the factory. “Why bother with separate logistics for the battery when they have the entire assembly process here from scratch?” – they wondered. Despite official statements denying battery production in Szeged, concerns persist.

Water supply poses another challenge, as the factory’s high water demand raises fears of residents receiving contaminated or poor quality drinking water. Additionally, one woman expressed worries about the influx of guest workers potentially leading to conflicts within the community.

January 4, 2024

Hungarian workers getting replaced with foreigners?

Opposition Mi Hazánk labour expert János Lantos condemned on Friday that “Hungarian workers are getting fired and replaced with foreigners” throughout the country.

He told a press conference that government claims about foreigners only getting employed for jobs that cannot be filled by Hungarians were untrue. He added that multinationals were “importing masses of guest workers in an organised way to Hungary”.

“In practice, masses of Hungarian workers get fired and anti-Hungarian discrimination is evolving,” he said. He added that Hungarians were becoming “second-rate employees”, with many companies employing them only as rent workers.

Lantos called for making it mandatory that labour hire agencies ensure the same rights to their employees as to those “employed in the traditional way”.

Read also:

Number of foreign workers in Hungary booms – Read more HERE

December 22, 2023

Number of Filipino workers in Hungary revealed

Currently, there are nearly 10,000 Filipino migrant workers in Hungary, and this figure is expected to multiply by 2024.

Rowena Paragasa, Vice President of the Philippine Association of Employment Agencies (PASEI), said that there are currently 8-10,000 Filipino guest workers employed in Hungary. In Europe, there are about 100,000 Filipino workers, mainly in the health, manufacturing, hospitality and logistics sectors.

Filipino workers are in high demand within the labour market. Hungary offers a monthly pay of only EUR 550-600 compared to the range of EUR 1,500-1,700 in Western Europe. However, Hungary provides additional perks such as free accommodation, complimentary travel to the workplace and food subsidies.

The challenge in Hungary lies in the inability to settle here long-term, in contrast to Austria and Germany, HR Portal writes..

“Many cry with joy when they step on Hungarian soil. One of their first trips is to a Roman Catholic church. Those who arrived in the spring and summer have just seen snow for the first time in their lives,” says the manager.

Read also:

What’s the reason behind the baffling Hungarian workforce decline in Austria?

December 19, 2023

Guest workers to drive buses between Budapest city centre and Budapest Airport?

Before, Ambrus Kiss, one of Budapest’s deputy mayors, excluded that they would employ foreign workforce at the companies in the ownership of the capital. However, some subcontractors decided otherwise. Thankfully, there will be an English-language dispatcher helping them.

According to index.hu, Mr Kiss said before that Budapest-owned transport companies would not employ foreign workforce. Before, the press wrote about the possible employment of Filipino drivers. He added that there was a workforce reserve in Hungary they would not like to give up.

However, BKK, Budapest’s transport company, has a subcontractor, ArrivaBus Ltd. They operate 450 buses in the city and they employ Filipino drivers. Mr Kiss said they would monitor customer service and information on their buses. Furthermore, they expect the foreign drivers to know at least enough Hungarian to communicate with the passengers.

Mr Kiss said then that employing foreign drivers was a wrong direction, because it would decrease wages.

Employing foreign workforce is bad news

However, Gábor Naszályi, a Hungarian transport trade union’s chairman, told ATV that guest workers will drive on bus line nr 100. That is not the airport shuttle connecting the city centre with Budapest Airport, which is 100E. Buses under the nr 100 commute in the 10th district, between Örs vezér Square and Expo Square.

Mr Naszályi said that the decision was a step towards the wrong direction. He added that talks about next year’s salary increase started at the BKV. He highlighted it was good news that they could conduct substantive negotiations with the company as opposed to their colleagues working at state-owned Volánbusz.

Read also:

Half of Budapest to be closed next week due to presidential visit – Read more HERE
Wizz Air vs Ryanair ‘war’ continues in Italy, emergency landing in Budapest – Details in THIS article

December 17, 2023

Breaking: Hungarian parliament adopts law on guest workers

Parliament on Tuesday adopted a law on the entry and stay of third-country citizens in Hungary.

The law was adopted with 141 votes in favour and 49 against.

The law states that sojourn in Hungary is not a fundamental right for third-country citizens. Foreigners may stay only for reasons and on the legal grounds accepted by the state, for the permitted time and under the conditions outlined by the relevant regulations.

Under the law, guest workers may enter the country only in numbers not exceeding the number of vacancies, and their stay may not exceed three years.

Visas issued for short-term stays allow holders to stay in the country for 90 days within a six-month period. Long-term visas allow stays between 90 and 180 days, while permanent visas have no time limits as a rule.

The new law replaces Hungary’s law on guest workers and establishes a unified law on aliens.

It excludes guest workers from the circle of those entitled to family unification in the country.

The government offices must investigate whether the positions the guest workers are applying for, be it seasonal or not, could be filled with Hungarian workers, it says.

Employers must conclude an agreement with the Hungarian state. The number of permits issued annually is determined by the economic development minister. Among permit holders, nationals of one country must not exceed 25 percent.

Long-term visas can be granted for guest workers, entrepreneurs and investors, for highly qualified work force or double nationals, as well as for purposes of study, health-care reasons or as a delegated worker.

Permanent visas will be issued to third-country citizens who earlier obtained a residency or immigration permit, and those holding a temporary residence card, national residence card or EU residence card.

Read also:

December 13, 2023

Orbán government fills the labour market with thousands of Asian workers, despite propaganda

It is nothing new that the Orbán government is actively trying to turn Hungary into one of the world’s biggest battery powers. Bigger and bigger battery manufacturing investments keep coming to Hungary. But who will fill these vacant positions under such dangerous circumstances? Mostly guest workers from third-world countries.

There has been a trend for some years now that it is no longer possible to find domestic labour for the lowest-paid jobs. Just as Hungarians migrate to the West to do the jobs that Western Europeans don’t want, workers from even poorer countries are now coming to Hungary to do jobs that no one wants in Hungary. In reality, working in battery factories is hardly attractive to Hungarian workers. According to research cited by Andrea Éltető, senior research fellow at the Hungarian Academy of Sciences, to Qubit, since the covid pandemic, people are less willing to accept poor quality or unsafe jobs.

Where do guest workers come from?

The government first allowed guest workers from Ukraine and Serbia to come to Hungary in 2016. In 2022, it made it easier to recruit guest workers from a further 9 countries: the Philippines, Indonesia, Vietnam, Mongolia, Belarus, Kazakhstan, Bosnia and Herzegovina, Northern Macedonia and Montenegro. This summer, it made it easier to recruit from 8 more countries, including Brazil, Colombia and Russia.

According to Ákos Jáhny, Managing Director of Get Work Trend Ltd., “it is the result of a lot of research in foreign and domestic affairs” why these countries were chosen. “A wide variety of ethnic groups and nationalities have been examined culturally and religiously, and in terms of attitudes to work.” In many ways, the Philippines is the most ideal. “Even if it is difficult to say, we also had to take into account that we had to choose countries where the Hungarian wage level is still attractive,” Jáhny added.

“These jobs are soul-sucking; there is a high probability that anyone who can do it will quit at the first opportunity,” said Andrea Éltető. “Battery factory work is characterised by a high degree of automation on the one hand, and monotony on the other, so pushing buttons or doing the same few movements for 12 hours in three shifts. For this reason, these jobs are very unattractive to European and domestic workers.”

Guest workers have all the motivation to work

“On the production line, [the guest workers] are rational, they are more organised, they see the problems, and they have no motivation to lie sick alone in a workers’ shelter. They would rather go to the factory and work. It follows that they are seen as more efficient. But they are just as human, they are fallible, they can be sick and often they are cold, even in 20 Celsius degrees,” Jáhny said.

Jáhny stressed that they are able to recruit mainly from countries where even Hungarian salaries are considered to be outstanding. “Sometimes couples leave their children at home with their grandparents and come to work here because the earning potential in Hungary is two to three times higher than in their home country. If two earners come, it makes a huge difference to the family budget back home. They really come to work and not to take advantage of the social system.”

Guest workers much more skilled than factories need

Jáhny told Qubit: “If we are looking for people with English language skills for manual labour, up to 10,000 people from the Philippines apply for a single advertisement, while in Hungary, it is only ten at most. In the case of guest workers, we hire the 50 we need out of 10,000, so the best come. They have a minimum of secondary education and up to 30% have a university degree. They are much more highly qualified than the kind of work they have to do here.”

No, guest workers will not take away Hungarians’ jobs

According to Jáhny, “most factories, if they decide to employ a third-country national, seek the opinion and agreement of the unions. They also don’t want to have problems within the factory with foreigners coming in. On the contrary, they want to convince Hungarian workers that it is not their job that is being taken away, and that they will not have to work overtime for six weeks, but can work normally.”

According to economist Márton Czirfusz, “the anti-migrant propaganda of the Orbán government in recent years has shifted the management of potential local conflicts onto the employing company [of guest workers] or its trade union, or even the local mayor of the municipality where the guest workers are being housed.”

Thus, the Orbán government seems to be belying itself: after the loud and prominent anti-migrant propaganda of recent years, it is letting jobs that do not pay enough for Hungarians to make a living exist so they have to be carried out by guest workers. And what do guest workers get in many parts of the country for simply existing and working here? Anti-migrant sentiments and many Hungarians being “afraid” of them for no real reason other than the propaganda they have been hearing for the past few years.

Read also:

December 13, 2023

Hungarian workers cannot be expelled from Continental’s factory in Hungary, says Minister Nagy

Economic Development Minister Márton Nagy held talks with the executives of car parts supplier Continental in his office on Monday, and he made it clear that Hungarian jobs belonged to Hungarians, his ministry said.

Nagy and Continental Automotive Hungary CEO Róbert Keszte and the company’s other leaders reviewed strategic trends in the economy, and specifically the car industry, touching on recent press reports concerning Continental, the economic development ministry said in a statement.

The minister reaffirmed the government’s commitment to protecting families and jobs, saying businesses first had to offer job openings to Hungarians before employing other nationals.

Keszte said that contrary to the media reports, Continental’s plant in Makó had yet to carry out any collective layoffs. He added, however, that the layoffs concerned the termination of temporary and fixed-term employment contracts as well as employees who are reaching retirement age.

He said Continental provided more severance pay to its employees than what is required by law. He said the company was committed to observing the legal regulations and supported the amendments tightening the law on the employment of guest workers.

Continental employs close to 8,000 people in Hungary.

As we wrote before, while many perceive Hungary as being anti-foreign, the statistics do not support this notion. It is estimated that there are already 500,000 guest workers employed in Hungary, details HERE.

Also, as we reported earlier, the minimum wage agreement was signed in Hungary, details are HERE.

December 12, 2023

Hungarian workers train guest workers then get fired from Hungarian factory? – UPDATE

Hungarian workers at Continental’s Makó factory face dismissal following the training of guest workers.

The German rubber company Continental’s Makó plant is trying to make room for foreign workers by dismissing domestic workers, according to the local labour union.

The union condemns the lack of communication from factory management, with local secretary Roland Hajdú highlighting to Népszava that the layoff extent and details were undisclosed, though legally not obligated. Approximately 25 workers each in November and December will be laid off, yet this move doesn’t qualify as a collective redundancy.

ContiTech Fluid Automotive Hungária Ltd. in Makó does not produce car tyres but focuses on car parts, employing nearly 1800 individuals. Surprisingly, employees only learned of their dismissals through the media.

Only Hungarians were laid off

The reasons behind their dismissals are not known, but it is striking that only Hungarian workers were made redundant to their knowledge. Rumours are circulating in the factory that the dismissal of Hungarians could open the door to foreign workers. Currently, there are some 150 Indonesian workers working at the factory.

According to the union, the local management seeks to heighten worker vulnerability, especially for those far from home, making it challenging to assert their interests.

“For example, due to the increase in orders in 2022, we have hired more than 500 people in Makó during this period. But now, due to the deterioration of the market and the backlog of orders, we have to take steps to ensure that our business remains sustainable and our employees are affected as little as possible. It is on the basis of these principles that we have taken the decision to make the aforementioned redundancies, which we have communicated to local stakeholders in accordance with the law. The current move will largely affect temporary agency workers and will be implemented by the end of 2023,” Continental’s management wrote.

Hajdú emphasises that many of the fifty dismissed workers had dedicated two decades to the Makó factory, with some even responsible for training Indonesian workers just six months prior.

UPDATE from Continental

We received the following statement from Continental on the matter:

“We would like to draw your attention to the fact that the recent article on your website about the Continental factory in Makó, following the statement of Roland Hajdú, Secretary of the Makó Rubber Industry Trade Union (Makói Gumiipari Szakszervezet), contains a number of deliberately untrue statements and out-of-context information. Unfortunately, the Makói Rubber Industry Trade Union regularly attacks our company with similarly malicious, deliberately untrue and twisted statements.

In response to the article referred to, we are taking legal action against the union, in this case against its secretary Roland Hajdú, and we are making the following statement to your newspaper.

In conclusion, we would like to underline that as a responsible employer, we always strive to respond appropriately to changes in the external business environment. For example, we have added more than 500 employees in Makó during this period due to the increase in orders in 2022. But now, due to the deterioration of the market and the backlog of orders, we have to take steps to ensure that our business is sustainable and that our employees are affected as little as possible.

It is on the basis of these principles that we have decided to make the aforementioned redundancy adjustment, in which we positively derogate from the legal requirements and, in accordance with our collective agreement, offer our departing employees a higher severance payment than required by the legislation.

The general information referred to in the article has been published through our usual digital and face-to-face internal communication channels, which may indeed include bulletin boards in the production halls of some of our teams carrying out physical work, but in no way has it been limited to these channels.

Contrary to the press reports, we have already shared at this stage the reason for the redundancies (which is the aforementioned reduction in order books) and our HR colleagues personally inform our staff personally affected by the redundancies.

With regard to our duty to inform, we would like to stress that we have informed the Works Council, where the Makó Rubber Industry Trade Union has an elected representative, in accordance with the legal requirements. It is important to stress, however, that the representative of the Makói Rubber Industry Trade Union, Roland Hajdú, deliberately does not attend the meetings of the Works Council organised by us, thus excluding the union from the official information chain by his own decision.

With regard to the determination of those affected by the redundancies, we would like to note that the selection is based on merit, not nationality. In the process, of course, foreign colleagues have been considered and are also included in the redundancies for underperformance.

Contrary to press reports, due to negative trends in the automotive industry in the area affected by the redundancies, there is no recruitment process planned either now or in the near future, so speculation about the recruitment of foreign staff is not true.

As we indicated in our previous statement, the majority of the redundancies concern agency workers and the law allows agency workers to be employed for a maximum of 5 years. Therefore, it is not true that the majority of the staff leaving have been with us for more than 20 years.”

Read also:

November 30, 2023

Underpaid guest workers employed in Budapest instead of Hungarians?

Guest Worker Labour Workforce Shortage Vendégmunkás labour market

The opposition Democratic Coalition (DK) has called on the Budapest city’s leadership to employ Hungarians for “normal wages” instead of “underpaid” foreign guest workers.

Budapest’s leaders had earlier ruled out the employment of guest workers by municipality companies and had asked their subsidiaries to follow suit, DK city assembly group leader Sándor Szaniszló, told a press conference ahead of a municipal assembly meeting on Wednesday. “But the employment of guest workers who mainly come from third countries outside the EU has been prevalent in Hungary,” he said.

It was unacceptable that foreign capitalists and “the businesses of [Prime Minister] Viktor Orbán made excessive profits this way”, he said, adding that opposition-led Budapest must demonstrate that “it disagrees with the government’s philosophy of exploiting workers in the interest of generating economic growth and making profits.”

Read also:

November 29, 2023