Direct Request (CEACR) - adopted 1991, published 78th ILC session (1991)

Employment Policy Convention, 1964 (No. 122) - Hungary (Ratification: 1969)

The Committee takes note of the information supplied by the Government in reply to its previous comments. During the period under review, the report shows that the country experienced big changes in the context of the accelerated transformation of the economy into a market system; consequently, the country is entering a period of large restructuring of the labour market. The Committee would be grateful if the Government would provide information on the situation, level and trends of employment, unemployment and underemployment, both in the aggregate and as they affect particular categories of workers such as women, young persons, older workers and disabled workers. It would also be grateful if the Government would indicate generally the extent to which the active employment policy pursued meets the requirements of the Convention with regard both to the objectives defined (Article 1 of the Convention) and to the methods of application (Articles 2 and 3). Please provide additional information on the following points:

1. The Committee notes the information on the various programmes funded or supported by the Employment Fund. It would be grateful if the Government would continue to provide information on the development of these programmes, the special difficulties encountered and the effect on employment and income, including as regards measures for training and retraining and, more generally, for the co-ordination of education and training policies with prospective employment opportunities.

2. The Committee notes the information on the type of work assigned in the community employment scheme, and on the conditions of employment. It notes in particular that the Government considers it necessary to create jobs of higher prestige. Please continue to provide information on the development of this scheme stating the measures that have been taken to make work as productive as possible.

3. The Government's report indicates that 9,000 persons, most of them individual small entrepreneurs, received entrepreneurial credit (meaning as many new jobs as beneficiaries), and that this credit was extended nationwide from November 1988. Please provide general information on the effect on employment of the recent measures concerning companies and enterprise agreements.

4. The Committee notes the information on the programmes to ease strains in employment, launched in crisis areas, and notes in particular that extra financial support is available in case of redundancy which is expected to involve 6,500 jobs. It would be grateful if the Government would provide information on how these programmes have affected job creation and on the extent to which the above financial assistance has been used and has enabled the surplus manpower problems in the regions concerned to be overcome.

5. The Government provides information on the wage regulation mechanism set up in 1989, on the question of minimum wage fixing particularly in connection with inflation, and the wage reform process under way. The purpose is to ensure that, after the period of transition, the level and increase of wages will be determined exclusively by economic and market conditions, primarily through consultations between representatives of employers and workers.

The Committee would be grateful if the Government would continue to supply information on the wage reform now in process and on developments in the price and wage fixing or negotiation system.

6. The Committee notes with interest the information on the participation of workers' and employers' representatives, particularly in the work of the National Council for Reconciliation of Conflicts, on the dispute settlement bodies for specific issues, and on their consultation in the formulation of various employment policy measures. It notes that the Government is studying the means of developing the activities of the above National Council, which is the main co-ordination and consultation body for the most important questions of the national economy affecting workers and employers. It would be grateful if the Government would continue to provide information on consultations held with representatives of the sectors concerned by measures to be taken, particularly within dispute settlement bodies (national and regional), and with regard to matters concerning retraining, transfers, social guarantees and the protection of workers whose employment has been terminated (Article 3).

7. With regard to the information on the introduction of an unemployment benefit system and on the reorganisation of employment services, the Committee would be grateful if the Government would refer more particularly to these matters in its report on Convention No. 2 concerning unemployment.

8. Lastly, the Government's report refers to the drafting of an Employment Act under which the measures envisaged will be financed by contributions from employers and workers as well as by allocations from the state budget. The Committee would be grateful if the Government would provide information on developments with regard to the above draft and to provide a copy of the text as soon as it is adopted.