Direct Request (CEACR) - adopted 2012, published 102nd ILC session (2013)

Minimum Wage-Fixing Machinery Convention, 1928 (No. 26) - Hungary (Ratification: 1932)

Article 3(2) of the Convention. Minimum wage fixing machinery. Consultations with the social partners. The Committee notes that following the recent adoption of the new Labour Code – aiming at introducing structural reforms to the prevailing industrial relations system and promoting flexible employment relations – the National Economic and Social Council (NGTT) has replaced the tripartite National Conciliation Council (OÉT). The Committee understands that the Government’s intention is to modify the minimum wage fixing process and alter the previous intense participation of social partners in this process. More concretely, the Committee understands that the Government is no longer obliged to reach agreement with employers’ and workers’ organizations before setting the national minimum wage. The NGTT, which includes representatives of employers, workers, chambers of commerce and churches, may draft and address proposals to the Government but does not have decision-making power. In this connection, the Committee notes the comments made by six trade union confederations in September 2011 according to which the new labour legislation does not involve the social partners in the determination of the minimum wage. The workers’ organizations also allege that the social partners were not consulted at any stage of the labour law reform. While noting the Government’s explanations regarding the new rules on determination of the national minimum wage based on consultations with – as opposed to the consent of – the social partners, the Committee wishes to recall the importance of continued constructive dialogue and the true meaning of consultation as being different from mere “information” and from “co-determination”. In this regard, the Committee wishes to refer to its 1992 General Survey on minimum wages, in which it pointed out that “consultation” implies that employers and workers must be able to have a real influence on the decisions to be taken (paragraph 195), and also that consultation of the social partners needs to be useful and effective, that is to say that the social partners are genuinely given an opportunity to express their views, in full knowledge of the facts, and that their views are taken into consideration at the appropriate time (paragraph 425). The Committee accordingly requests the Government to provide more ample information on any further developments regarding the revision of the minimum wage system, particularly as regards the full consultation and direct participation of employers’ and workers’ organizations at all stages of the establishment, operation and modification of the minimum wage fixing machinery. Please also provide more detailed particulars on the establishment, composition and mandate of the NGTT.