May 30th, 2011

Unions criticize gov’t for merging interest coordination forums

Heads of Hungary’s trade unions told MTI late on Friday that the government’s planned restructuring of the interest coordination system would be a step backward.

Janos Borsik, chairman of unions federation ASZSZ, said the new body would not be capable of taking over the functions of the National Interest Reconciliation Council (OET). The move goes against generally accepted European norms, he added.

LIGA Unions head Istvan Gasko said workers have interest coordination forums of their own all over Europe. From the details revealed thus far, it appears “the government does not want to continue separate talks with labourers,” he added.

Imre Palkovics, head of the Federation of Workers’ Councils, said that the government had not discussed its restructuring plans with its social partners in advance. He added, however, that the new National Economic and Social Council, replacing OET and two other forums, would be a broad consultative body, which could help involve large groups of society in efforts to solve problems of the country.

According to the government’s decision announced earlier in the day, the new Council will comprise employer and employee representatives, the economic chambers and civil organisations. It will be a consultative body with the authorisation to take positions and make proposals to the government.

In the new mechanism, the government envisages its role as a mediator rather than a decision maker, said a statement issued by the National Economy Ministry.

The main players in future negotiations will be the organisations delegating members to the Council. State officials will attend the meetings as guests and as social partners, the statement added.

The Council will monitor and evaluate the country’s economic and social development, and make recommendations to parliament and to the government to resolve macro-economic and social problems. It will also review employment and labour policy and distribution strategies, and programmes affecting large groups of society, the statement said.

The new mechanism will replace an obsolete and inefficient system so far divided between OET, the Economic and Social Council, and the Economic Interest Reconciliation Forum, the statement said.

In an interview to MTI earlier on Friday, trade unions warned that they would go on with their protests during the summer “if the government continues to refuse negotiations.”

The Economy Ministry on Friday withdrew the three secretaries of OET saying that the body will be discontinued.

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