The Hungarian Case Industrial Relations in the Context of Subcontractors.
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Transcript of The Hungarian Case Industrial Relations in the Context of Subcontractors.
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The Hungarian Case
Industrial Relations in the Context of Subcontractors
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Agenda Introduction Industrial Relations in Hungary Methodology The Company Context Stakeholders’ Perspectives on Subcontracting Findings on Industrial Relations in the Context
of Subcontracting Conclusions
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Industrial Relations in Hungary
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Industrial Relations in Hungary
Dual system: Work Councils and Trade Unions
Decreasing trade-union membership: 16,8% in 2008
Decreasing collective bargaining coverage: 25,5% in
2008
Company level Trade Unions being important
Only few multi-enterprise or sectoral collective
The termination of the National Interest
Reconciliation Council (OÉT) in 2011
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New Labour Code and the impact on Industrial relations (As of 1st July 2013)
a reduction of unions’ rights; less time off for union representatives; saved time off cannot be recompensated
financially (lost source of income); works councils, rather than trade unions, will
have the right of formulating opinions; only one collective agreement will be signed for
each employer; collective agreements can be concluded by a
works council if there is no trade union entitled to do so.
Shift of dual system towards Work Councils in the future
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Methodology
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Methodology
14 interviews made in June 2013:
Principal company management: 5 Subcontractor management: 2 Principle company employees: 3 Subcontractor employees: 2 Trade Unions: 2
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Introduction on the Company Context
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Company context Large size company Workers hired on permanent contracts, on
full time, on two shifts 70% blue-collar workers 30 % unionized Significant ratio of on-site subcontractors’
employees
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Industrial Relations at the Principal company
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Best Practice Industrial Relations in Hungary at METAL HU
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Network of trade union relationships
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Stakeholders’ Perspectives on Subcontracting
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The areas of subcontracting: In our research we observed the following areas:
Core: Logistics Production
Support: Cleaning Maintenance
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Reasons for outsourcing1. Cost saving – Service and Maintenance2. Flexibility - Logistics3. Increasing specialized know-how and
technology requirements (environment, esthetics, safety, EU) – Production
The different reasons for outsourcing bears on - the type of IR related problems - the room for maneuvering of the trade union
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Company - subcontractor relationsMinimum requirements: Code of conduct based on UN’ Global Compact
10 principles Hungarian legal regulations High quality requirements Health and safety requirements
According to the rule: communication through only official contact persons of the two companies
In reality: stories about informal communication in the „bus stop”.
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Management’s perspective
Regular management meeting of HR manager with Subcontractors to discuss „commonalities”, ex: bus timetable, shifts, overtime, safety regulations, etc.
Also bilateral meetings with subcontractors QU: Is there negotiation and communication
among subcontractors?
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On-site Subcontractors’ Management perspective
Adaptability and speed as a core competency On-site buildings of mixed ownership: on the
land of the order giving company but from own financial resources
Management meetings Challenged by the new rolling work schedule In need of information on time
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Employees’ perspective Equal treatment of workers regardless of
affiliation No exclusion of leased employees within
teams Fair treatment of mature aged workers Motivation to join TU:
past TU experience, being part of a community
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Subcontractor employees’ perspective
Some employees have common e-mail addresses with the Company
Considering joining TU, or forming own TU, no steps taken yet
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Leased workers’ persectives
Increasing number Selection process recommended for
leasing companies Work in the production sites In-sourcing in larger groups to provide
motivation to leased employees Equal pay after 6 months as a legal
requirement, but not necessarily in practice
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Split workers’ identity
Two email addresses “I am a proud worker of X, but I know I get my
wage from Y” “If asked in town I say I work at Y” (leased
worker) “I wear Y company’s cloth” (leased worker)
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Findings on Industrial Relations in the Context of Subcontracting
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The Present 40 members from mostly leased companies
and service companies Willing to accept new members from
subcontractors Ready to support the formation of new trade
union entities at the subcontracting company
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Trade union dilemmas/options in the context of subcontracting1. To focus on main company employees
only?2. To invite trade union membership from
subcontractor employees? 3. To informally represent interests of
subcontractor employees towards main company management?
4. To support own trade union formation of subcontractor employees?
5. To negotiate on integrating labour conditions into the audit process of subcontractors?
6. Other?
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Trade Union’s vision for reforming the IR system at present
Smaller independent TUs with coordination within the narrower industry and not the broader metal industry.
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Conclusions
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Conclusions Mutual dependencies New competencies are needed on all sides:
cooperation, self-control, formal and informal networking, conflict management, partnership building, speed etc.)
Partnership Management has a strategic new role New approach to boundary management within
industrial relations Possible new approaches to industrial relations in
the context of subcontracting: Independent trade union from national industry networks Regionally organised trade unions Integration of IR and other labour standards into the
audit system of subcontractors.