Summer tourist season at Lake Balaton is threatened by severe labour shortage
This year, the Hungarian seaside, one of the most popular summer holiday destinations not only for Hungarians but also for foreigners, is facing again a severe labour shortage. Catering establishments are trying to solve the issue by raising salaries.
Recurring labour shortage
Recruitment has started at Lake Balaton. The region mostly relies on tourism and catering. In the past, the lack of a sufficient workforce had already caused disruption and various problems for both caterers and guests.
The solution: massive salaries
The only way for caterers to solve the issue is to attract workers with high wages. According to rtl.hu, those who take on summer jobs can receive salaries of up to HUF 1 million (EUR 2,700).
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László Kovács, president of the Hungarian Hospitality Industry Association, confirmed the above-mentioned information. However, he added that the job is both demanding and challenging. It requires working 10-12 hours a day, mostly in the heat, which few people can handle.
Tibor Gyurácz, an expert at the Human Centre, says that chefs are the hardest to find. As a result of the labour shortage, some restaurants may not open at all, or the service might be slower than usual, serving fewer guests.
Government: Hungary’s job market needs 0.5m additional workers
Hungary’s labour market is in need of 500,000 additional workers who should preferably be found on the national market before the country turns to guest workers, the economic development minister told a meeting of the National Council for Sustainable Development on Friday.
Detailing the industrial development strategy, Márton Nagy said Hungary’s economy should be built on investments, which required a constant stream of foreign capital, modernisation and research and development. He said Hungary’s investment rate was 27.2 percent last year, the third-highest among OECD countries. Nagy said the government was committed to Hungary’s convergence despite the negative effects of the war and the energy crisis. He said Hungary’s GDP per capita reached 77.5 percent of the European Union average last year, rising from 75 percent a year earlier.
“Those who say Hungary’s convergence was interrupted in 2022 aren’t telling the truth,” he said. “The indicators prove that this was the biggest jump in convergence in a decade.” With a targeted GDP growth of 1.5 percent this year, Hungary’s development level is approaching 80 percent of the EU average, Nagy said, adding that there was a “realistic chance” of reaching 90 percent by 2030.
Nagy said evidence of the success of the government’s policy of opening up to the East could be found in FDI and noted a “significant” expansion of the share of Asian investors. He said Hungary’s role as a bridge between German vehicle makers and their battery making partners in the East “suits the country well”. He added that with the construction of new capacity, Hungary was set to become the fourth-biggest battery maker in the world.
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PM Orbán wants to settle 300 thousand migrants in Hungary?
The latest industrialisation plan of the government means the cabinet had to find more than 300 thousand guest workers, a Hungarian news outlet estimated. Before, the Hungarian government conducted a successful campaign against economic migrants, saying that “they could not take the jobs of the Hungarians”.
According to 24.hu, PM Orbán said one week earlier that the Hungarian economy needs 500 thousand more workers to fill vacant positions in the job market. He said he would prefer internal resources in that regard. However, there are not enough Hungarian nationals to do so. That is why more than 70 thousand guest workers worked in Hungary last year. And RTL News think they are the solution for Hungary’s reindustrialisation project.
The Hungarian Central Statistical Office (KSH) regularly measures record-high employment rates. But Orbán said last week that Hungary needs 500 thousand more people in its job market. He added the source for that would be internal reserves, Hungarians living abroad and guest workers, consequently.
Based on a recent analysis of Portfolio, the reserve means unemployed, people having part-time jobs and pensioners. That is 100-150 thousand people, meaning that the remaining 300 thousand must be guest workers, József Hornyák, an expert said.
Orbán’s economic year opening in 2023:
Orbán said guest workers might remain in Hungary only temporarily. But most of them would not want to remain. They aim to go farther West for higher wages, Mr Hornyák highlighted. Hungary has the lowest average wages in the EU, József Nógrádi, commercial director of Trenkwalder Hungary, stated. Guest workers come to Hungary even from exotic places Colombia, Mongolia, and the Philippines.
Defence minister calls for Hungarian-made equipment for army
The government is committed to ensuring Hungarian-made weapons from domestic suppliers to the Hungarian military, the defence minister said on Saturday, adding that meeting that goal was of strategic importance for the country’s security.
Kristóf Szalay-Bobrovniczky visited a shooting range at Táborfalva, in western Hungary, where hand guns and protective gear used by the police and the military were tested, and said on Facebook that the development of “guns, machine guns, light and submachine guns” had started. “You need strength to make peace; we keep working,” the minister said.
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The most reliable truck drivers in Hungary come from India
More and more truck drivers from India or other non-European countries are working in Hungary.
The CEO of the Hungarian transport company Waberer’s told Telex in an interview that their most reliable truck drivers were Indians. Although the country has completely different driving habits and language differences can also be problematic, many truck drivers come from India or other countries across Asia and Africa.
Labour shortage
There is currently a severe labour shortage in this sector across Europe. There are about half a million truck driver jobs vacant in Europe and at least 8,000 in Hungary. This is no coincidence, as there are many difficulties for people working in this type of job. Among other things, several weeks of absence from their families and constant loading work discourage newcomers. While companies offer high monthly salaries, the fact that the cost of a truck licence and the necessary exams can cost up to HUF 2 million (EUR 5081.36) in total may not be attractive for many, Telex reports.
However, in recent years, more and more professional drivers from non-European countries have been coming to Hungary. Zsolt Barna, CEO of Waberer’s, told Telex that there were several reasons for the growing number of foreign truck drivers in Hungary. Apart from Waberer’s, numerous other companies are currently looking for workers from India. He pointed out that a number of transport companies are cooperating with Bányai & Bányai Partners Consulting. With their help, Waberer’s has also been looking for foreign workers. In response to Telex’s inquiry, managing director Tibor Bányai said that they had already recruited Indian workers for several companies in Hungary, such as Magyar Suzuki Ltd. and TT Sped Ltd.
Female drivers to tackle labour shortages
According to recent industry news, female drivers will soon be coming to work in Hungary. The Danish company Baton Transport has recently launched its “Trucking for Equailty” programme, recruiting female drivers in India to work in Europe, including Hungary.
Bányai told Telex that women applying to become truck drivers should have the same competencies as male candidates. He also stressed that it was not at all common for foreign workers to settle in Hungary. According to Bányai, the first group of female drivers from India is expected to arrive in May.
Reliable truck drivers
The CEO of Waberer’s said Indian truck drivers were as reliable as their Hungarian colleagues. Zsolt Barna, the CEO told Telex that his company was highly satisfied with its workers from India. He explained that they did their work precisely, kept the vehicles clean and drove fuel-efficiently. The CEO said that the latter also came with a wage supplement. Furthermore, he stressed that there was no difference in the wages paid to Hungarian and Indian employees.
Zsolt Barna and Sándor Székely, president of the European Trade Union of Cargo Carriers, agree that labour shortages cannot be completely solved by bringing in workers from abroad. Although the average monthly salary of truck drivers in the country is high, at HUF 800,000 (EUR 2,041), it is still below the European average. Many of them decide to go to work in another country after their contract expires. Székely also pointed out that they could not even fill the shortage with Hungarian drivers, as there had been no adequate vocational training for them in the country for years.
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Guest workers from third-world countries are flocking to Hungary
Labour shortages and the growing demand for labour from new investments are driving the arrival of more and more guest workers in Hungary. In addition to Ukraine and Serbia, workers from 9 other third countries are already allowed to come under the new, relaxed rules.
More and more guest workers are employed in Hungary
24.hu asked temporary employment agencies about the employment of foreigners. According to Work Force, it is important to stress that foreign labour is needed mainly in shortage occupations where there are few domestic workers. The first to start using workers from third countries was in manufacturing and production. However, they expect that in the future they will be able to move into other jobs.
Trenkwalder does its utmost to ensure that foreign workers are seen by employers and their environment as seeking to thrive here. Just like Hungarians who go to work in Europe or other parts of the world. They therefore provide training to help newcomers. These initiatives will make it easier for the workers to settle in.
Temping agencies are expecting a boom this year. The main reason is that demand in the physical sector remains high and the labour shortage has not decreased in recent months. They mentioned that some of their partner companies have reported very positive news. They have reached production peaks with temporary workers in their second full week working there.
Foreign labour is essential
Prohuman estimates that today 80-100 thousand people are missing from the Hungarian labour market. For this reason, they see that the import of foreign labour will continue to be unavoidable. They say that labour shortages are so severe today that guest workers may be needed even in a recessionary environment.
The managing director of Prohuman, Csongor Juhász shared with 24.hu that they work for more than 800 clients in Hungary. On average, they employ 7,000 people in Hungary. In the domestic market, there are around 30-40 companies where Prohuman employees from outside the EU work. The exact figure is a trade secret, but it is in the thousands, he added.
How does this affect Hungarian workers?
Prohuman believes that the guest worker issue is also about keeping jobs for Hungarian workers. If a company is unable to solve its labour problems , it may decide to relocate production to another country. But then Hungarian workers will also have to look for other work.
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Foreigners are flocking to Hungary: nothing can stop them
More than 70,000 foreigners work in Hungary, with more and more people entering the country under easier terms, mainly in industry. This is the official figure, but their numbers are certainly higher and growing. Experts estimate that 500-1000 foreigners arrive in Hungary every month to work. The labour shortage has and will continue to determine the inflow of foreigners.
The KSH (Central Statistical Office) surveyed companies with at least 5 employees. The number of foreign workers employed by Hungarian companies was 50,000 at the beginning of 2019, rising to 60,000 by the end of the year. The withdrawal of the restrictions following the COVID-19 showed a new trend of increase, as there was a shortage of domestic labour workers.
Officially, more than 70,000 foreigners were working in Hungary in the middle of 2022. This represents a 20 percent increase compared to the middle of 2021, which shows that the number of foreign workers in Hungary is steadily increasing.
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Sectors to which workers are flocking
According to portfolio.hu, the companies that hire foreign workers are typically global companies: automotive, food industry, metal industry, plastics and rubber industry and electronics production factories.
The hospitality sector is also seeing an increasing inflow of foreign workers. Filipino employees are becoming more common in tourist places in Budapest, but food delivery workers are also on the rise. Most of them speak good English, are well educated and reliable, and those with fixed contracts keep to their commitment and duration.
But that’s not surprising, since an entire industry has been built on sending workers abroad. If they leave the company they were sent to work for, not only can they be barred from working abroad again, but so can their families. The situation is different for Vietnamese workers, according to József Nógrádi.
“Some of them are already leaving the airport, many of them prefer to work in other countries of the European Union.”
However, Pham Ngoc Chu, managing director of DC Handel Trade and Services Ltd, says that Vietnamese skilled workers who have already undergone vocational training and have already worked meet all the needs. The president of the Vietnamese Entrepreneurs Association in Hungary added that the biggest challenge is not language but culture and lifestyle differences. Where there is a greater demand for imported labour, Asian workers are more welcome. For example, for simple skilled jobs such as fruit picking, packing and cleaning, but also for jobs requiring expertise such as chef, welder and electrician.
As for Mongolian and Indian workers, the main problem is integration. They come with very different religious systems, work cultures and/or social experience. In the case of jobs requiring qualifications, there are significant administrative complications in getting certificates localised. But according to József Nógrádi, there are more and more Kazakh, Kyrgyz and Belarusian workers in Hungary.
There are no more Ukrainian workers
Despite the Russian-Ukrainian war, there are no more Ukrainian workers than before the war. This is partly due to the military conscription of men, and women also tend to move on to Western Europe because of refugee status and higher wages. They have less and less language problems because of advances in technology. In general, far fewer people are coming to Hungary from Ukraine to work than before the war broke out, says Magdolna Mihályi, managing director of Jobtain HR Services Ltd.
Foreign workers can be given a maximum two-year employment contract in the initial period. It is not even recommended for a shorter timeframe because of the costs involved, such as travel, accommodation, medical care, residence and work permits. After the two years, the contract can be extended for two plus one years.
Increasing demand for foreigners
According to József Nógrádi, Trenkwalder’s commercial director, the number of new expats could now be between 500,000 per month. There is an increasing demand for foreign labour from companies operating in Hungary. This is evidenced by the fact that even a few days before Christmas they brought in workers because the demand was so high.
It is therefore likely that a hybrid solution will work in practice for these large investments. Domestic and foreign workers will be both employed to fill the newly opened positions.
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Amendment of Hungarian Labor Code to curb workers’ rights
While working towards the harmonisation of law in the EU, the Hungarian government also proposed an amendment to the Labor Code that makes it easier for employers to lay off workers with a newly-acquired disability.
Workers with disability
The main purpose of the new amendments is for the Labor Code to comply with the EU guidelines. Some of the motions, however, have nothing to do with the Work-Life Balance Directive while some of the related articles will have a rather negative effect on the workers – writes telex.hu
One of the severely criticised amendments concern workers with medical incapacity. According to the current law in practice, employees who are no longer able to perform their duties due to disability are either assigned new tasks or are discharged with severance pay. If the motions are passed, employees could remain technically employed while on unpaid leave. This will not leave much choice for the workers but to resign without getting severance pay.
Paternity leave
Another crucial part of the alterations of the law concerns paid paternity leave. The EU Work-Life Balance Directive states that 10 days of paid paternity leave is the bare minimum that governments must provide, which is 5 days more than what fathers have the right to in Hungary. The compensation rate equals to the rate of sick leaves, which is 70 percent in Hungary. However, the government decided that they would pay 100 percent in the first 5 days, but only 40 percent in the remaining 5 days, resulting in an average of 70 percent. According to MASZSZ (Hungarian Trade Union Confederation), the goal of the government is to dissuade fathers from taking the second half of their paid leave. MASZSZ believes that paternity leave should cover a rate of 100 percent and it should be at least 15 days.
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Parental leave
On a related note, the directive also states that parents of a child 8 years old or less have the right to four months of unpaid parental leave per year. However, the motion set by the government only talks about 44 days of parental leave, far off from the 60 work days that would make up the four months.
Workers will also have less freedom in choosing when they wish to have a day off. The 7 days that employees are entitled to choose can be overruled by the employer under „exceptionally important economic interest or when the operation is at direct risk”. What counts as such is not really well-defined, which might serve as a loophole for employers.
Further modifications
According to MASZSZ, the modifications about what counts as on-site work will add another layer of uncertainty that is harmful to workers: the term „normal place of work” is planned to be replaced by „normal place of work for the position”. It may happen that journeys will be included in the normal place of work for certain duties.
A deadline for schedule changes in collective labour agreements is also included in the amendments, and it is set to be 48 hours. However, MASZSZ reckons it is too short, reasoning that it restricts employers. Besides, it is not beneficial for the employees either since they have to accommodate changes in their schedule on extremely short notice.
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Author: Gyula Szabó
Every fourth worker is Hungarian in this Austrian province
In Burgenland, there is one Hungarian worker for every fourth Austrian. According to the Austrian Ministry of Economy, more than 21,000 Hungarians worked in the province in September.
Every fourth worker is Hungarian
According to the September data series of the Austrian Ministry of Economy, 21,493 Hungarians work in Burgenland, of which 13,028 are men and 8,465 are women, reports nyugat.hu. If we compare this with the number of Austrian people, the data is even more shocking. Currently, 81,214 Austrian workers are registered in the province. This means that there is one Hungarian for every fourth worker.
The number of Hungarian workers far exceeds other nationalities in Austrian provinces
Although workers come from various nations to Burgenland, the number of Hungarians far exceeds other nationalities. Romanians are in second place with 2,271 workers, followed by Slovaks (2,098) and Germans (1,232). In addition, Croatian (682), Polish (628) and Bosnian (619) workers are also present in high numbers in Burgenland.
Hungarians work in these fields
According to ministry data, Hungarians in Burgenland mostly work in retail (2,522), construction (2,102), gastronomy (2005) and the hotel industry (1,662), writes penzcentrum.hu. The increase in the number of Hungarian workers in Burgenland is striking if we compare the data from 2008 with that of 2022. While in 2008, 8817 Hungarians worked in the Austrian province, in 2022, this number increased to 21,493.
Never before have so many Hungarians worked in Austrian lands
“We go to work in Austria because of financial security”, said one interviewee to nyugat.hu. More and more Hungarians decide to work in Austria, contributing to labour shortages in Western Hungary. And the main reason is the proximity to the border. Among others, many workers in the catering industry leave Hungary. Those who are ambitious, speak languages and can work, stay at home only in the rarest of cases. In Western Hungary, this is a very serious problem when it comes to the tourism and catering sectors. Moreover, the situation is similar in the trade and beauty industries.
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Orbán failed to solve the teachers’ situation in 12 years, now the House Speaker is asking for more time
Teachers need a wage hike, but the situation of teachers and public education must be treated as long-term strategic issues, Speaker of Parliament László Kövér has said, adding that strike action was not the solution.
Fidesz has been in government under Viktor Orbán for 12 years, but in that long time it has failed to do anything about the humiliating salaries of teachers. There is now growing resistance from teachers in Hungary, as the Government is trying to silence them by force, so teachers who criticise or strike are fired and intimidated.
There is a huge teacher shortage in Hungary, with thousands of teachers currently missing from schools. Few people apply to become teachers because of the harsh conditions, and many leave the profession, as even cleaners and factory workers are paid more than the people who will raise the future generation of Hungarians.
Speaker: Teachers could not put the law aside and launch a movement of civil disobedience
Commenting on protests in secondary schools nationwide, Kövér told commercial HirTv late on Monday that teachers could not “put the law aside and launch a movement of civil disobedience — a concept which does not exist in Hungarian law — to the detriment of our children.”
Teachers’ wages must be raised as they are not proportionate to the work and responsibility they shoulder, Kövér said in the interview.
The state of public education, including the wages, is key to the future of children, and requires strategic decisions for the long term, he said. At the same time, “wages are not connected to the quality of education in the short term, as decent-minded teachers do not make their performance dependent on their wages,” he added. The speaker presumably speaks lightly, as Kövér brings home a gross monthly salary of EUR 8,500, which would pay the monthly salaries of 10 low-paid teachers.
The situation of teachers was among the Fidesz-led government’s first concerns after coming to power in 2010, Kövér said. The private and public sectors have since engaged in a spiral of “wage competition” and teachers were left behind, he said. “No one disputes that disparity,” he said, adding that the question now concerned how the government can achieve change “that satisfies everyone” according to which timeframe, he said.
Short-term solutions cannot be expected, and the “government is trying to remedy the anomalies resulting from this degree of wage disparity with stopgap solutions insofar as its means allow,” Kövér said.
On another topic, Kövér said the shadow cabinet set up by Democratic Coalition MEP Klára Dobrev was a “message to other opposition parties that cooperation was over”. At the same time, “the wife of [DK leader] Ferenc Gyurcsany can’t say anything new to ruling parties”. Gyurcsány will not get another stab at government “in view of the sins he has committed in the past”, Kövér said.
Regarding European sanctions policy, Kövér said that the EU’s leading elites should “become pro-Europe again”. “We are not pro-Russia or Russia-friendly; we are Hungarians and pro-Hungary, and focus on the interests of our own nation,” he said.
“The European elite’s disregard for Europe’s most fundamental needs — as it is ruining Europe — poses worrying and serious questions. Until we have an answer to that, we can’t expect changes to the EU’s view of us,” he said.
Kövér said that currently Hungary represented the interests of Europe as well as Hungary.
Kövér said political leadership of the EU had failed to consider the “potential of the opponent or enemy that they are facing”, adding that they were therefore unfit for the job.
Kövér said
the real war in Ukraine was not between Russia and Ukraine but between Russia and the US, and “the introduction to a conflict that could be waged between China and the US-led West if we are not very careful.”
Their aim, he said, was to “erect a political and economic Iron Curtain between Russia and Europe so that no one can dream of creating a peaceful, balanced economic area based on mutual respect.”
Regarding changes to the special legal order — emergency powers — in Hungary, Kövér said that a proposal by Fidesz group leader Mate Kocsis aimed to add a deadline to the government’s mandate to govern by decree. Under current legislation, parliament must withdraw the special mandate it had granted. The new regulation would have the special mandate expire automatically after 180 days, he said. “This does not restrict the rights of the opposition or parliament, which would continue to exercise its rights of control,” he said.
Labour shortage: you can’t give birth in one of Budapest’s biggest hospitals!
This weekend you will not be able to give birth at Budapest’s biggest hospital, the Szent Imre Hospital, due to labour shortage, Hungarian media writes. The institution suggests mothers-to-be visit other hospitals in Budapest, provided their labour starts.
Labour shortage hitting hard the Hungarian healthcare sector
From 16 September to 18 September, there will be no admissions to the department of obstetrics and gynaecology of the Szent Imre Hospital in Budapest. Mothers-to-be may go to the Szent János Hospital, the Clinical Centre of the Semmelweis University or the South-Pest Hospital Centre, blikk.hu reported.
Based on the information of HVG, a severe labour shortage is behind the decision of the Szent Imre Hospital. A former MP, Andrea Varga-Damm wrote on Facebook that the situation is similar in the hospitals of Veszprém and Szombathely, West Hungary.
One-jab Pfizer vaccine to be administered to health-care workers first
A new, one-jab coronavirus vaccine developed by Pfizer-BioNTech, of which Hungary has so far received 109,000 doses, will be first used as a booster for vaccinated health-care workers, the official website koronavirus.gov.hu said on Thursday. The vaccine will be available for the Hungarian public from next week, the website said.
Furthermore, government offices are also polling demand in elderly care homes, it said. Hungary has ordered 9.5 million doses of the vaccine in a European Union purchase programme launched in wake of the spread of the Omicron variant. It is expected to receive 3 million doses this year and 6.5 million in 2023. Of the latter, 1.5 million doses will be optimised for children, the website said.
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Hungarian agriculture ministry portal offers seasonal work to people fleeing the war in Ukraine
The ministry of agriculture has updated its internet portal munkaszuret.hu advertising vacant positions in the sector, making it available in Ukrainian to help refugees find jobs.
The portal offers seasonal work to people fleeing the war in Ukraine, the ministry said in a statement on Tuesday.
The portal is aimed at providing a quick link between businesses and job-seekers, the ministry said, noting that Hungarian producers were in great need of workers with the autumn harvest drawing near.
As we wrote earlier, More and more Asian migrant workers are expected to enter the Hungarian labour market, especially in the field of tourism and hospitality, details HERE.
Non-EU migrant labour key to Hungary growth
The employment of migrant workers from outside the European Union is key to Hungary’s economic growth, Hungarian temporary employment agency Work Force said on Monday.
Hungary’s growing manual labour shortage woes are forcing businesses to look for new ways to tackle the problem, Work Force said in a statement, noting that it had recently helped with the employment of a group of 40 Filipino migrant workers in Veszprem, in western Hungary.
The agency said it expected over 1,000 more foreign workers to enter the Hungarian labour market in the near future.
Demand for migrant workers is highest in the manufacturing sector but they are also needed at hotels, hospitality venues and service companies, Work Force said.
Work Force has eight offices across Hungary and provides services on a continuous basis to 300 clients.
As we wrote earlier, labour shortages cause flight delays and cancellations at Budapest Airport, details HERE.
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Labour shortages cause flight delays and cancellations at Budapest Airport
It was probably air transport that suffered the most from the COVID restrictions. Now that life has more or less come back to normal, another serious issue emerged: labour shortages.
Pénzcentrum asked Budapest Airport and Wizz Air about how they were trying to improve the situation, as well as what kind of salary workers could expect.
Labour shortages: a serious issue
In the last few weeks, the number of flight delays and cancellations has increased significantly. However, not only Budapest Airport is affected. As we have written before, due to the chaos in Western Europe, many flights had to be cancelled. Moreover, in addition to the lack of ground staff, there are problems with luggage transportation all over the world. In their statement, Budapest Airport emphasised that the problem was not caused by the increase in the number of passengers, but by the heavy traffic periods. That is when many planes arrive and take off at the same time. In such cases, it is difficult to perform the tasks on the ground that are most affected by the labour shortage: check-in, baggage loading and delivery.
Read alsoStrikes, flight delays and cancellations – here is the Wizzair’s plan
How much does the airport labour force earn?
In these desperate times, the question comes to mind: how much is the airport willing to pay its workers? Passenger and baggage screeners as well as staff working in operations and information earn the highest starting salary. They receive HUF 404,300 (EUR 994,56) gross wage which is HUF 268,000 (659,27 EUR) net. In addition, the porter and baggage car coordinators earn HUF 345,000 (EUR 848,69) gross salary per month which is HUF 229,000 (EUR 563,33) net. However, this salary might not be competitive enough. Bus drivers in Budapest are promised HUF 434,000 (EUR 1067,62) net, while garbage collectors can earn up to HUF 450,000 (EUR 1106,98).
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Update:
Budapest Airport is prepared for the summer season
“The severe labor shortage experienced at European airports primarily affects ground handling companies – who, among other things, carry out check-in, baggage loading and delivery, which can cause serious disruptions in the servicing and management of flights.” – explains Budapest Airport. This is accompanied by further labor shortages at airlines and strikes affecting the whole air travel industry. However, Budapest Airport emphasised that they are prepared for the summer season in terms of human resources.
“The waiting time during the passenger security check is still 10 minutes, our goal is to keep it around 15-20 minutes even in the heavy summer season, which is still below international standards.”
In general, only 30-minute delays are expected
In June, 68% of flights departed on time or maximum 30 minutes late. In addition, 98% of flight delays were caused by reasons beyond the competence of Budapest Airport (e.g. reasons related to traffic diversion or airlines, delays in arriving flights). In general, 10-15 departing flights were canceled per week in June for airline operational reasons. Budapest Airport said that they do not have accurate information about the reasons for flight cancellations, those are the responsibility of the airlines.
Strikes, flight delays and cancellations – here is the Wizzair’s plan
The Hungarian low-cost airline, Europe’s fastest-growing one, today provided an update on its first-quarter results ahead of its Q1 F23 earnings release on 27 July 2022. In the announcement, they shared their plans on how they would like to address the sector’s problems. These are the strikes challenging every European airport, the flight delays and cancellations we reported many times and the labour shortage. Below you may read their announcement.
According to the company’s statement, Wizz Air continued to ramp up its operation against a challenging macro and operational backdrop.
Q2 F23 outlook
Despite the factors impacting Q1 F23, the Company is expecting a material operational profit in the second quarter of the FY (July – September) as revenue and pricing momentum is expected to continue to improve, as we highlighted during the full year results release.
- We expect continued RASK improvement on the back of higher fares and improving load factors, resulting in a high-single digit RASK improvement for the quarter vs. F20. Load factors as of July improve to above 90% and the fare environment remains strong, with industry capacity reducing and consumer demand over summer strong.
- We expect our higher fleet utilization to help to further improve our ex-Fuel CASK, returning towards historical ex-Fuel CASK levels for the quarter and as we reduce the operational impact of disruptions.
- To be able to avoid cancellations and secure a more punctual operation to our customers, we have
further improved the agility and resilience of our network including adjusting schedules where we have seen a higher occurrence of issues (e.g. slot allocation issues, turn-around timings).
In total for the peak summer period we expect to reduce utilization a further 5% versus the plan outlined at the full year results to reduce the impact of ongoing external disruptions. We now expect summer ASK growth to be around 35% versus F20.
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Q1 F23 highlights
- ASKs for the quarter were 30% higher versus F20, growing sequentially month-on-month as most restrictions from Covid-19 were being discontinued during the March-May 2022 period and as the capacity reallocation related to the war in Ukraine started to take effect during the course of the April-June 2022 quarter.
- RASK for the quarter was down -10% versus F20, with net fares in line with F20 but load factor at 85%, down 9 ppts, reflecting the efforts of Wizz Air to pass through higher input cost in its fares. RASK sequentially improved month on month with April and May at -14% versus the respective month in F20, and June RASK was at -1.5% on the back of higher net fares (+6% vs F20).
Read also: Budapest Airport: 10-15 flights to be cancelled a week due to chaos in Western Europe
- Ancillary revenues for the quarter were up 14% over F20, or 34.2 EUR/pax (up 4.1 EUR/pax vs F20), and, ticket fares were down 12% versus F20.
- Fuel CASK for the quarter was up 94% versus F20 driven behind an average fuel price of 1,239 USD/mT. The Company has recently announced F23 ‘insurance’ hedge coverage levels, which have been completed, and, a return to systemic hedging starting as of F24.
- Ex-Fuel CASK for the quarter was up 16% versus F20, at 2.62cts versus 2.27cts in F20, of which disruptions drove an 0.22cts increase versus F20, an increase of around 50m EUR. The balance of the ex-Fuel CASK increase versus F20 was largely driven by a 10% lower than historical utilization during the quarter, given the gradual ramp up month on month.
- The strength of the USD at the end of the quarter (1.04 vs. EUR) compared to the start of the quarter (1.11 vs. EUR) drove an unrealized FX loss on the Company of 136m EUR. This is a non-cash impact. The impact is driven by a revaluation of the USD lease liabilities on the balance sheet of the Company. This impact will reverse should the EUR regain strength relative to the USD during the next months and quarters, nevertheless, the spot rate saw a further strengthening of the USD versus the EUR (1.02 vs EUR).
- Cumulatively, the unrealized FX losses, the cost of disruptions and the lower utilization in the quarter, combined with the pricing environment especially in April and May 2022 drove an operating loss of 285m EUR for the quarter and a net reported loss of around 450m EUR (also including the unrealized FX losses).
- Wizz Air’s liquidity remains strong with the cash balance at the end of the quarter improving to around 1,570m EUR and the Company continues to maintain its investment grade rated balance sheet position.
Szeged’s oldest and most famous restaurant closes – PHOTOS
As no chef could be found, the famous restaurant Gulyás Csárda (Goulash Tavern), which has been operating in Szeged for 65 years, closes down. Even for a sufficient salary offer, noone wanted to work in the restaurant as a chef.
After 65 years, the end is here for Gulyás Csárda
The restaurant has been open every day for 65 years, apart from the strictest epidemic closure in recent years, Szegedi Nap reports. Even though they offered a job for eight hours and a net salary of HUF 450 000 (EUR 1122), no chefs have applied. Thus, after more than six decades of operation, one of Szeged’s first restaurants, the Gulyás Csárda, closed. The owner of the restaurant, János Holló, told Index about the circumstances of the closure.
Severe labour shortage
“The labour shortage is so severe that we had to close the Gulyás Csárda in Szeged. And it is not just a local problem, it is a national problem, that we ran out of cooks. But train drivers and bricklayers cannot begin to cook, because the expertise is needed. I will find gold in the grass before I find a good cook in Hungary. That is how bad the lack of supply is,” János Holló, who was forced to close his iconic restaurant nearly a week and a half ago, shared his story with Index.
János Holló rented the Mars Square restaurant for 22 years from IKV Ingatlankezelő és Vagyongazdálkodó Zrt, a company of the Szeged municipality.
“I can use one word to explain why I closed the Gulyás Csárda – lack of cooks (one word in Hungarian – ed.). If it can be in two words, it is a global shortage of cooks (two words in Hungarian – ed.),” Holló told the news portal. He paid a net HUF 450 000 to his cooks, who worked 15 days on and 15 days off, but this net HUF 30 000 (EUR 74.8) per day was not enough to keep the workforce. So on 19 June, the curtain was finally closed, Telex writes.
No chef found
The owner of the Gulyás Csárda added that before the closure, they tried to find qualified chefs in every forum, they mobilized their entire circle of acquaintances, and even borrowed chefs from other restaurants.
“In the last three-four-five months, when I was spending my umpteenth night without sleep because of it, I said that even if my heart is bleeding, it is not worth it, it has to end now. Many people in Szeged expressed their regret after we closed the restaurant last Sunday. But we are still in business, we still have three boarding houses, so the family’s livelihood is not in danger,”
János Holló shared that at least they have a way forward after the closure of the Gulyás Csárda.
Read alsoBudapest Airport faces hardships
Budapest Airport faces hardships
Labour shortage, cancelled flights, lost baggage – airline companies and their passengers have it hard nowadays. The shortage of staff at European airports, coupled with the summer increase in air traffic, is causing disruptions in ground handling in particular, resulting in flight delays or cancellations. These problems are also having an impact at Budapest Liszt Ferenc International Airport, said the airport.
Reasons behind cancellations and disruption
A relatively small number of flights at Budapest Airport – 10 to 15 per week – are cancelled for operational reasons. Sometimes, due to accumulated delays, the receiving airport is unable to welcome the last flight, so it does not take off. Meanwhile other times, planes do not take off because ground handling is disrupted or workers are on strike, MTI quotes the company as saying.
It is a good idea to check if everything is going well before departure so that you can transfer to another flight in time if necessary. Changes to timetables can be monitored on Budapest Airport’s website – however, passengers are not contracted to the airport operator but to the airlines, so in the event of cancellations or delays, they should contact the airlines, Budapest Airport underscores.
Inconveniences on Sunday and the current situation
On Sunday night, 150-200 passengers arriving in Budapest have been forced to spend the night in a completely empty building at Budapest Liszt Ferenc International Airport because they have not received their checked bags. The airport also addressed this unfortunate situation and apologised to them. They promise to do their best to avoid similar situations, napi.hu writes. They added that they consult with ground handlers on a daily basis and adapt to the constantly changing situation.
- Read also: Rent increases accelerate in Hungary
Budapest Airport is currently quiet, with no increase in waiting times before departure and a maximum 10-minute wait during security checks. It is, however, still recommended to arrive 2 hours before departure for short-haul flights, but 3 hours for overseas flights. Parking should be booked in advance, as it is more difficult to find a space in heavy traffic, they added.
Read alsoTips to make air travel from Hungary easier!
Tips to make air travel from Hungary easier!
European air transport is reaching the tipping point. With strikes in many countries, delays and cancellations, our holiday abroad could go up in smoke. Even in this unfortunate situation, there are solutions. Continue reading our article to know more about easier air travel in Hungary.
Forbes Hungary commented on the issue, stating that the chaos was due to the lack of workforce. It is clear that due to the pandemic, airlines and airports had to lay off many of their staff. This is contrasted with the happenings of today. Since spring, there has been an unexpectedly high number of passengers travelling around the continent. This number is only expected to grow higher day by day. Airlines and airports are now clambering to restaff their services, with little to no avail. These staff shortages are happening at crucial times.
Situation in Hungary
At Ferihegy, everything is under control so far. Staff is at the ready, and there have been no disruptions on the departure side. Security checks are speedy with very short waiting times. In Debrecen and Hévíz, there is also staff on duty when a flight is departing.
Tips on making air travel easier
Even though Hungary is managing in these harsh times, we must take precautions. While the following points are not foolproof, they might make your next flight a little easier.
- Arrive two hours before departure, do not expect to board your plane late.
- You may purchase a ticket for the next flight (for a fixed price of EUR 80-100) in case you missed yours due to long waits.
- Book your flight early in the day in case of extra long waits.
- Look for alternative departure locations if you are travelling back to Hungary.
- If your flight is cancelled 14 days before your departure, you may transfer your flight or ask for a refund
- If your flight is cancelled within 14 of departure, you may ask for compensation of EUR 250 (only if the cancellation is due to the fault of the airline).
How are airlines managing?
Needless to say, all European airlines are struggling as of now. However, three airlines have cancelled most flights in the past week. HVG reports that Lufthansa is cancelling almost two thousand of their flights. The cancelled flights are mainly between Munich and Frankfurt. Following the German airline are Swiss EasyJet and British Airways in severity.
In Hungary, Ryanair and Wizz Air are holding up steadily, with little to no cancellations due to staff shortages.
Why is the Asian workforce steadily increasing in the Hungarian labour market?
More and more Asian migrant workers are expected to enter the Hungarian labour market, especially in the field of tourism and hospitality. The majority of guest workers come from Indonesia, the Philippines and Mongolia, but more and more workforce is coming from Vietnam and India as well.
Asian migrant workers are considered to be reliable and hard-working people. This is why more and more domestic recruitment or temporary employment agencies are trying to attract Asian workforce to Hungary. The primary sectors where they are recruited are tourism and hospitality where the labour shortage is the highest since the Covid crisis. After the recovery of the economy in Western Europe, the previously dominant Ukrainian workforce has started to leave the country. Thus, by spring, the situation in Hungary had become so critical that, according to a recent report of the Hungarian Statistical Office (KSH), nearly 90,000 workers are missing from the Hungarian labour market – reported by the Hungarian news portal Index.
In order to counterbalance the situation, the Hungarian governments came up with a solution last July. Accordingly, companies were allowed to employ non-EU Asian workers, including Filipinos, Vietnamese, Indonesians and Mongolians, in shortage occupations under certain conditions. One year after the emergency measure was introduced, 13 intermediary firms have now been granted so-called ‘qualified employer status’.
Companies that have been authorised to legally employ Asian migrant workers have undergone serious due diligence. They were also required to set aside a deposit EUR 124,000 (~HUF 50 million) as security. However, the companies involved are very optimistic. Experts say that Asian workers have the same wage demand as Hungarians. In addition, they are less likely to go home after a while, meanwhile this was more common for workers arriving from the neighbouring Ukraine. Currently, the majority of guest workers come from Mongolia, Indonesia, the Philippines and some from Vietnam.
Mongolian workforce
Mongolian workers have already been present in Hungary, around Mór and Győr. They mainly get positive feedback. According to their employers, they are basically skilled workers, who compensate for their low skills with a high work ethic. They mainly come to Hungary for a few years to save money and then return to their home country. They are hard-working and well adapt to domestic and professional environments.
Indonesian workforce
Indonesian workforce are typically more educated than Mongolians or Vietnamese: many of the applicants come to Hungary with secondary or higher education. There are already many of them working in the country. Despite the cultural and religious differences, experts say that Indonesians can easily integrate into the local community. This is especially true for those fields where the labour shortage is more remarkable.
Filipino wrokforce
The biggest advantage of Filipino workers is that they all speak English. That is why most of the domestic companies would like to employ workforce form the Philippines. However, there the posting of foreign workers is a separate sector of the economy with its own ministry and bureaucracy, making life very difficult for domestic recruitment companies.
According to the expert, to hire Filipino workers, domestic recruitment or temporary employment agencies neeed to register with the local ministry as the first step. Then, they need to cooperate with a Philippine agency, who charge them a very substantial amount of money, EUR 1900-2800 for each Filipino worker. In order to make the system more liveable, further cooperation is planned from this autumn.
Vietnamese workforce
Vietnamese people already have a large European colony and an extensive network of contacts, which is why they are at risk of migration. In practice, this means that if they are not brought in through the right recruitment channel and with the right pre-screening, they will get off the plane in Budapest and go on to Vienna, Rome or Paris. Therefore, their long-term stay in Hungary is uncertain.
Indian workers
In addition, the employment of Indian labour is also becoming more common in Hungary. There have been many positive experiences with Indian workers across Europe, and due to their skills and strong work ethics, they are welcome in many sectors of the economy. Based on this, Waberers International Plc has decided to start employing 80 Indian drivers and 2 dispatchers in March this year. The Waberer’s group continues to rely mainly on Hungarian and regional drivers, and the vast majority of the workforce are Hungarians, but they need foreign workers as they cannot replace sufficient numbers of drivers in the region. In order to learn the local conditions and comply with the legal requirements, Indians had to attend courses in Hungary, get experience of European driving, learn about health and safety and other regulations. As the language of communication with these colleagues is English, a professional interview in English was also conducted – reported by the Hungarian news portal Blikk.