Worker participation - Hungary

Introduction

In Hungary, the Government is responsible for defining the fundamental requirements for safety and health at work and employers are responsible for implementing them. The success of OSH measures, however, hinges upon the participation of workers. Hungarian legislation provides for workers' participation in establishing working conditions, including measures to achieve safety and health at work and prevent accidents and occupational diseases. Furthermore, legislation also recognises workers' rights and power for consultation and information. Workers can be involved in OSH activities directly or indirectly via their representatives.

Regulatory framework for worker participation

Workers' participation Workers' participation is essential to enforce the constitutional rights to safety and health at work and to physical and mental health. Both on international and Hungarian legislation define the duties and rights of workers.

International convention on OSH, organisation and bargaining
By virtue of its Act No. 75/2000^[1] Hungary ratified the C155 – Occupational Safety and Health Convention, 1981 of the International Labour Organisation (ILO) in 2000. C155 specifies measures for employees’ and employers’ participation both at the national and undertaking level (see Article 8 – Part III and Article 19 – Part IV). ILO Convention No. 98 on the Right to Organise and Collective Bargaining Convention^[2], which also fosters collective agreements concerning working conditions, was ratified by Act No. 55/2000.^[3]

European legislation on participation at national level
The original European Social Charter^[4] was ratified by Hungary in 1999^[5], followed by its amendment^[6] in 2009. In its Part II, Article 3 the Contracting Parties undertake to consult employers’ and workers’ organisations with a view to ensuring the effective exercise of the right to safe and healthy working conditions.

European legislation on participation on undertaking level
Article 11 on Consultation and participation of workers of the Framework Directive 89/391/EEC^[7] provides that employers shall consult workers and/or their representatives and allow them to take part in discussions on all questions relating to safety and health at work, was transposed into Hungarian legislation by Act No. 93/1993 on Occupational Safety and Health (Munkavédelmi Törvény – OSH Act).^[1]

Information and consultation

Directive 2002/14/EC of the European Parliament and of the Council establishes a general framework for informing and consulting employees in the European Community.^[9] It requires employers to inform and consult employees through their representatives in undertakings. This information and consultation shall cover:

• information on the recent and probable development of the undertaking's or the establishment's activities and economic situation;
• information and consultation on the situation, structure and probable development of employment within the undertaking or establishment and on any anticipatory measures envisaged;
• information and consultation on decisions likely to lead to substantial changes in work organisation or in contractual relations.

Having complied with most of the requirements prior to the issuance of the Directive, only minor supplementary amendments were necessary for Hungary to adopt. However, the former 1992 Labour Code addressed employees' rights under a different approach to the Directive. It included the right to express opinion, a right categorised somewhere between information and consultation, closer to the latter. The new Labour Code^[10] issued in 2012 is also in line with the Directive in linguistic terms. It sets out the conditions for the information of and consultation with the employees’ and their representatives.

The OSH Act already provided in 1993 that in agreement with employer and employee interest representation organisations, the State shall define the basic occupational safety and health requirements, as well as the institutions for the control and supervision of such.^[2]

The detailed regulation of the employer's consultation with employees was incorporated into the text only in 2004. The Act in force states that employees shall have the right to elect a health and safety representative (munkavédelmi képviselő) from among themselves. A workers' representative shall be elected at all employers with at least twenty workers. Employers with less than twenty employees shall be required to hold election if initiated by the trade union, works council or the majority of workers. Employers with less then twenty employees – if a health and safety representative was not elected – shall hold a consultation with the workers directly.

The health and safety representative is elected for five years and the employees shall be notified of the person(s) elected. The health and safety representatives, if there are at least three, may establish a local occupational safety and health committee (munkahelyi munkavédelmi bizottság, hereinafter referred to as "committee"). If a committee is established the rights of health and safety representatives, if such rights affect all employees, shall be exercised by the committee. The employer or its duly authorized representative shall attend the committee sessions if so requested by the committee.

At the employers employing at least twenty workers, and where a workers' representative has been elected, a common representative body shall be set up (paritásos munkavédelmi testület, hereinafter referred to as "representative body"), with an equal number of delegates representing the employer and the workers.

The employer shall delegate an executive employee with decision-making authority to the representative body, and a person appointed to carry out some or all of the employer's obligations concerning occupational safety (a foreman or supervisor, or an occupational safety expert). The experts providing occupational safety related services to the employer shall be invited to the representative body's sessions in an advisory capacity. The term of all members of the representative body shall be four years.

OSH and workers' participation

Workers' participation in relation to OSH is implemented on three levels in: at the national, sectoral, professional and undertaking level.

National level

There are two bodies that provide a forum for dialogue between social partners: the Occupational Safety and Health Committee (Munkavédelmi Bizottság, hereinafter referred to as "MB") and the National Economic and Social Council of Hungary (Nemzeti Gazdasági és Társadalmi Tanács, hereinafter referred to as "NGTT"), with the former being heavily involved in OSH matters.

The Occupational Safety and Health Committee (Munkavédelmi Bizottság)

In Hungary, since 1990 national reconciliation of interest related to occupational safety and health has been performed by the Occupational Safety and Health Committee (Munkavédelmi Bizottság), operating according to its own order of business. Secretarial and administrative services are provided by the authority responsible for OSH.

Composition
The Occupational Safety and Health Committee consists of the interest representation organs of employees and employers, as well as the representatives of the Government. Organisations with warrants granted by the National Representativeness Finding Committee (Országos Részvételt Megállapító Bizottság, hereinafter referred to as: ORMB^[12]) are the employees' and the employers' negotiating parties. Their work can be helped by temporary and permanent experts.

Tasks
Within the framework of its activities relating to occupational safety and occupational health, the Occupational Safety and Health Committee shall:

• a. express its preliminary opinion on bills of legislation and drafts of other provisions and measures, as well as on the accounts (reports) and temporary programs; its unanimous resolution or the differing opinion of the negotiating parties must be indicated in the respective presentations;
• b. take part in drawing up the national program for occupational safety and the annual schedule and timetable for the execution of the program, and in the analysis and review of the program;
• c. negotiate and present its opinion and recommendations concerning the issues presented by the negotiating parties;
• d. adopt recommendations concerning occupational safety requirements exceeding those contained in occupational safety regulations;
• e. provide information to the general public concerning its work;
• f. support the occupational safety information network by providing comments and information from its own database;
• g. make decisions in questions concerning the determination of vocational curriculum on the rules of occupational safety and health and educational curriculum on safe lifestyle.

Discussion
The Occupational Safety and Health Committee can be addressed by any negotiating party. In order to fulfil the tasks defined in points (a) to (c), the government negotiating party has to initiate the meeting. Any negotiating party can propose items for the agenda of the meeting. The Committee is quorate if each of its negotiating parties is quorate, meaning that more than fifty percent of its members are be present. Otherwise it can be quorate if the member(s) present is/are authorised to represent the majority opinion of the given social group.

National Economic and Social Council (Nemzeti Gazdasági és Társadalmi Tanács)

The National Economic and Social Council (Nemzeti Gazdasági és Társadalmi Tanács, NGTT) is an advisory body with the mission to discuss general economic and social policy issues affecting the entire society. Independent from the Parliament and the Government, this consultative, reconciliatory and proposal-making body provides assistance for policymaking in economic and social issues. Founded in 2011, NGTT's main task is to discuss national strategies and comprehensive matters affecting the development of the economy and society, sound and balanced economic progress, and promotion of development and realisation of social models suiting thereof. It aims to reach the broadest national consent and takes into consideration the reconciliatory practice of the European Union.^[13]

Membership
Members of the NGGT include unions, associations and confederations of employers' and employees' representatives and organisations, representatives of national business chambers, NGOs active in the field of national policy, Hungary’s historical churches specified in a separate Act as well as Hungarian-speaking representatives of academia inside and outside the country, creating the following sides:

• Economy: national employers' representatives and associations of organisations, presidents of the national business chambers, joint representative of the foreign and mixed chambers operating in Hungary, furthermore the president of those NGOs that are established to protect economic interests and have a substantial share in the concerning market or economic power.
• Employees: Presidents of associations of employees' representatives and organisations thereof.
• NGOs: representatives of non-governmental organisations.
• Academia: president of the Hungarian Academy of Sciences, researchers in economics and social sciences delegated by the Hungarian Rectors' Conference and the Hungarian Economics Association, researchers representing Hungarian academia outside the borders and appointed by the Hungarian Academy of Sciences.
• Churches: representatives of the churches holding an agreement with the Government.

The members of the NGTT members will have a mandate for four years originating from the delegating organisation, without any remuneration.

Organisation and operation of the NGTT
The Council works in plenary sessions summoned either four times a year (at least) or upon request. Its work is assisted by the Secretariat, a separate body with co-ordination, administrative and information tasks and providing the operational infrastructure. The Council prepares its activity report by 31 March every year to be published on the Government's website where opinions, positions and recommendations are also posted. By 31 March the responsible Minister prepares a report on how the opinions, positions and recommendations of the Council were applied in the foregoing year's legislative and governmental work.

Campaign for co-operation

In 2013 the National Confederation of Hungarian Trade Unions (MSZOSZ), the Confederation of Hungarian Employers and Industrialist (MGYOSZ) and the Norwegian Confederation of Trade Unions (LONorway) launched their two-year project to foster social dialogue in OSH.^[14] Their aim is to reinforce the practice of tripartite social dialogue:

• on a regional (county and local) level, reaching and involving SMEs;
• on a sectoral level by fostering sectoral agreements in OSH and
• by involving professional co-operating partners, local employers’ bodies, chambers and local authorities.

Sectoral level

Sectoral Dialogue Committee (Ágazati Párbeszéd Bizottság)

The improvement of social dialogue and reconciliation was initially outlined by Government Decree No. 1113/2002^[15], repealed in 2011 and the Agreement of the National Reconciliatory Council in 2002.^[16] The Social Partners and the Government concluded an agreement in view to create the framework for the operational requirements and rules of the Sectoral Dialogue Committees in 2004. This Agreement places special emphasis on the promotion of bilateral dialogue, the coordination of tripartite consultation (between the Committees and the Ministries) and professional assistance provided to the Sectoral Dialogue Committees that participates in the European sectoral dialogues. Sectoral Dialogue Committees ensure the fora for the bilateral (employees and employers representatives) direct social dialogue on sectoral level and provide a framework for sectoral and collective agreements and consultation with social partners. The role of a Committee includes the promotion of balanced sectoral development, implementation of autonomous social dialogue on a sectoral level aiming at establishing appropriate working conditions, maintaining peace within labour and promoting legality in labour market trends. There are 19 sectoral, nine sub-sectoral and two class dialogue committees working at the moment. These 30 committees include 81 representative organisations (40 employees' and 41 employers'). The Committees take part in the work of 19 European Sectoral Dialogue Committees. The number of agreements between social partners is on the rise. The Committees also intervene in the interest of the sectors in European fora.^[17]

Operation of Sectoral Dialogue Committees
The Government assumes to provide the infrastructural background, employ the assistant staff and support the professional programmes of the Committees while respecting the independence of the social partners. The interested parties shall inform each other and consult within the Sectoral Dialogue Committee. They publish papers that summarise their position and recommendations. The Committees undertake programmes according to their annual plans: preparation of professional documents and analyses, organisation of conferences, trainings, seminars and study tours, international networking, participation in the work of the European sectoral social dialogue committees, discussion on collective and other agreements.

Collective agreement with extended scope
Employers, their representatives and trade union(s) shall be entitled to conclude collective agreements in accordance with as the Labour Code.^[18] After consultation with stakeholders, the Minister in charge of employment and labour can expand the scope of a collective agreement to an entire (sub)sector, provided:

• the parties to the agreement are representative in the sector;
• the agreement was reached by an employer's representative;
• the expansion was jointly requested by the bargaining parties.

Collective agreements with extended scope that address OSH are currently in force in the construction, baking, HORECA and electricity sectors.
In terms of achievements, the Construction Sector Collective Agreement is outstanding by providing employees with the right to elect a health and safety representative in undertakings with as few as 25 employees, in contrast to the usual minimum of 50.^[19]

Forum of health and safety representatives (Munkavédelmi Képviselők Fóruma)

There are several initiatives to help the work of safety and health representatives and to promote employees' OSH reconciliatory opportunities. The annual National Forum for Safety and Health Representatives is an outstanding one since it aims to promote the co-operation of OSH representatives, employers and authorities, inform participants about recent developments in OSH, help OSH representatives in fulfilling their tasks and prepare them for the future challenges of effective representation.

In Hungary there are similar fora operating on sectoral level as well, including the Forum of Health and Safety Representatives in the Electricity Sector (Villamosenergia-ipari Munkavédelmi Képviselők Fóruma, "VIMFO"). The Federation of Trade Unions in Electric Energy Industry (Egyesült Villamosenergia-ipari Dolgozók Szakszervezeti Szövetsége, "EVDSZ") was founded to support VIMFO in implementing and orchestrating co-operation within the sector. Operating and holding its sessions on the basis of its bylaws, VIMFO aims to assist the activities of OSH representatives and the exchange of experiences in the promotion of OSH and working conditions through regular meetings and information published on its website. This can be useful not only for employees but for employers as well. VIMFO declared to convey employees' requirements for achieving occupational health and safety towards employers. OSH experts of the sector are invited to the VIMFO sessions. Besides sharing professional experiences, these meetings provide a platform for OSH representatives to express their views and recommendations on OSH issues.

Undertaking's level

Workers' participation in OSH on the undertaking level is quite broad in Hungary. Dialogue involves trade unions, works councils, health and safety representatives, their health and safety committees and parity OSH bodies (common representative bodies) operated by employers but requiring the participation of OSH representatives. Trade unions and works councils were not founded for the express purpose of OSH representation.

The OSH Act requires employers to consult with employees and their OSH representatives to provide occupational safety and health. Furthermore, the employer shall enable them to assist in its discussion on OSH measures in due time. Employees are authorised, directly or through their OSH representatives, to discuss the following duties of the employer in particular: assignment, employment and activities of persons concerned in the implementation of OSH tasks; provision of OSH information; planning and organisation of OSH training.

Indirect participation

Works council (Üzemi tanács)
Legal framework
The Labour Code is regulating the election, operation, tasks and sphere of authority of works council.^[20] Accordingly, if there are more than fifteen employees at the employer or at the independent establishment or division thereof, a union representative (üzemi megbízott) shall be elected. Accordingly, a works council shall be elected if the number of employees is higher than fifty. Works councils are elected for terms of five years. The number of works council members shall be three, if the number of employees does not exceed one hundred and thirteen, if the number of employees is more than two thousand. A central works council may be set up by several works councils. The central works council may not have more than fifteen members. Trade unions and works councils complement each another and in most cases, there is an overlap among the representatives: in 2003 approximately 70% of works councils were run by trade unions.^[21] The 2009 ESENER survey showed that while only among 14% of enterprises employing 10–19 have a joint consultative committee, employee forum or equivalent body, this ratio rises to 86.5% in those employing 500 or more.^[22]

Membership
Employees nominated as works council members shall have legal capacity and shall have been employed by the employer – other than newly formed employers – for a period of at least six months, and works at the given fixed establishment. Employees exercising employer's rights or are relatives of the employers’ executive officers cannot be elected.

Operation
The works council shall convene within fifteen days following its election, and shall elect a chairman from among its members at its inaugural session. Members shall attend the works council meetings in person. The works council’s operating regulations shall be laid down based on its order of business. With a view to discharging their duties, the chairman of the works council shall be entitled to working time reduction amounting to fifteen percent of his monthly working time, while members of the works council shall be entitled to ten percent.

Tasks
Works councils monitor the compliance with the labour legislation (including OSH) and shall collectively decide with the employer on the allocation of welfare funds. Employer shall consult the works council on the drafts of employers’ measures and orders affecting a large number of employees. This must be completed fifteen days prior to passing a decision, especially concerning the following:

• measures aiming safety and health at work and the promotion of prevention of work accidents and occupational diseases;
• the introduction and/or amendment of new work organization methods and performance requirements;
• drawing up proposals for the rehabilitation of workers with health impairment and persons with reduced ability to work;
• laying down working arrangement;
• balance of work and family life.

To the extent required for their responsibilities, works councils shall be entitled to request information and to initiate negotiations, with the reason indicated, which the employer may not refuse.

Discussions
The employer shall inform the works council at least every 6 months on issues relating to its economic standing, changes in wages, liquidity related to payroll, characteristic features of employment, utilisation of working time, working conditions, the number of employees and the description of job they perform. The works council shall inform the employees concerning its activities semi-annually.

Health and safety representatives (Munkavédelmi képviselők)
Legal framework
The OSH Act states that employees shall have the right to elect a health and safety representative or representatives to represent their rights and interests related to occupational safety and health.^[1] This right is legally granted to every employee regardless of owner and size (private, public, co-operational, mixed) type (Public Limited Company, Limited Liability Company, Limited Partnership etc.) both in the private and public sector. However, it is a legal obligation that the election of health and safety representatives be held even without the employees' initiation by employers with over twenty employees that are within the scope of the Labour Code. At employers with less than twenty employees, the election is obligatory if the trade union, works council or the majority of workers at the employer initiate it. The employer is responsible for organising elections and establishing the necessary conditions. The election of health and safety representatives is by secret ballot, equal and direct for a mandate period of five years. Workers shall be informed of the persons elected as health and safety representatives. The relevant provisions of the Labour Code on works council members and works representatives are applicable to the election, the recall and the termination of their mandate. This includes the option to form a central OSH committee. Employees, health and safety representatives and employers shall co-operate in matters of safety and health at work, and shall duly exercise their rights and fulfil their duties. Likewise they have to inform each other in due time.

The health and safety representative is entitled to check the safety of workplaces, the execution of measures aimed to prevent accidents at work and occupational diseases and employee preparation for safe work at any time. Therefore the representative has the right to enter workplaces, gather information in his/her field of activity, assist the preparation of the employer's measures affecting OSH matters, express opinion and encourage the employer to take appropriate measures. Furthermore, he/she can also invite external experts if deemed necessary. The health and safety representative participates in the investigation of accidents at work, may assist the investigation of the circumstances of occupational disease and can apply to the OSH authority for good cause. However, they do not have the right to halt dangerous work. The employer's OSH rules can not be issued without the consent of the health and safety representative.
In the mid-2000s labour inspectors' found that health and safety representatives were only present within large companies primarily alongside trade unions. They also reported that consultation was reduced to information from the employers' side. They were not eager to take action against the employer or contradict during inspections by the authority. Since the obligation only applied to organisations of 50 employees or more, representatives were scarce in SMEs and their knowledge was deemed as unsatisfactory.^[24] At that time, in Hungary the estimated number of health and safety representatives was 30,000. Many small enterprises have no health and safety representatives, which could be remedied by the introduction of the system of regional health and safety representatives in the most affected sectors (tourism, construction). The 2009 ESENER survey showed that some small enterprises had health and safety representatives (36–52%) with the rate gradually increasing by undertaking size up to 86% in enterprises with 500 employees or more.^[25]
Public servants and officials are not within the scope of the Labour Code so they cannot be included.^[26] Public institutions use to have no or just a few employees falling within the scope of the Labour Code, with the majority of employees being public servants/officials. In such cases the public institution is not required to (but may optionally) hold an election for health and safety representatives, but these workers generally do not take advantage of their rights to elect representatives. Public servant councils (közalkalmazotti tanács), which are similar to works councils, may be asked for consultation and cooperation in OSH matters. Act No. 33/1992 on public servants' legal status stipulates that a public servant council shall be elected at employers with at least fifteen employees. At employers with less than fifteen employees a public servant representative (közalkalmazotti képviselő) must be elected.^[27]

Training
The employer shall provide training opportunities for the health and safety representative necessary for fulfil their duties. Within the first year after election the training shall consist of a minimum of 16 hours and a minimum of 8 hours in the following years.

Occupational Safety and Health Committee (Munkavédelmi Bizottság)
Legal framework
A Occupational Safety and Health Committee can be formed upon the condition that the number of health and safety representatives reaches three. The Occupational Safety and Health Committee exercises the rights of the health and safety representatives on issues that affect all employees. The 2009 ESENER survey showed that occupational safety and health committees can be found mainly among enterprises with 500 or more employees (57%) but are very rare among small enterprises (5–22%).^[28]

Session
When the Occupational Safety and Health Committee requires so, the employer or its competent representative must participate at its session.

Common representative body (Paritásos Munkavédelmi Testület)
Legal framework
An employer must set up a common representative body if there are more than fifty employees and health and safety representatives operate. Its mission is to reconciliate occupational safety and health interests at company level.

Membership
The representative body shall have an equal number of delegates representing the employer and the workers. The employee's side is made up of the health and safety representatives. The employer shall delegate an executive employee with decision-making authority and a person appointed to carry out some or all of the employers’ obligations concerning occupational safety. The experts providing OSH related service to the employer shall be invited to the representative body's session in an advisory capacity. The term of all members of the representative body shall be five years.

Discussion
Employer and worker representatives shall alternate in the office of the chairman of the representative body. The employer shall provide for the conditions of operations of the representative body. The representative body shall analyze the working conditions and the working environment for the safety and health of workers on a regular basis, but at least once a year, as well as the related measures that may be necessary. Furthermore, it shall discuss the program concerning safety at work and shall monitor its implementation, and present its opinion on the drafts of internal regulations concerning safety at work.

According to reports from the mid-2000s, common representative bodies were set up only in 20% of the cases: either the employer refused to do so or no safety representatives were elected.^[2]

Trade union (Szakszervezet)
Legal framework
The Labour Code regulates the election, the operating conditions, the tasks and scope of authority of trade unions represented within the employer’s organisation. The Act also determines the number of trade union officials (szakszervezeti bizalmi): one for less than an average of five hundred employees and five for more than four thousand.

Tasks
Trade unions aim the promotion and defence of employees' interest in labour relations. Trade unions shall be entitled to conclude collective agreements, provide information to workers on issues relating to industrial relations, and request information from employers on all issues related to the economic interest and social welfare of employees in connection with their employment. Trade unions shall have the right to represent their members before the employers or their interest groups concerning the workers’ rights and obligations relating to their financial, social, as well as living and working condition. However, they have no right to inspect workplaces.
Trade union coverage has decreased in Hungary as well. The 2009 ESENER survey confirmed that recognised workplace trade union representatives are scarce in small enterprises (10–16%) but more frequent among medium-sized enterprises (41.5%) and common in enterprises with 500 or more employees (82%).^[30]

Direct participation

Legal framework
Employers with less than fifty employees shall consult employees directly if no health and safety representative election was held or it was null and void. In Hungary the form and the frequency of the consultation are not defined, but it should be held with special focus on the employer's following duties:

• assignment to and employment and involvement of persons concerned in the execution of OSH tasks,
• providing OSH-related information especially on the following:
  • co-ordination of work at premises where employees of different employers work simultaneously,
  • sources of danger, their prevention and occupational safety and health matters for employees concerned in order to prevent danger and minimise the harm of dangerous work processes and technologies,
  • the concerned part of the rescue plan drawn up for abnormal conditions when the safety rules of normal operation cannot be observed,
  • orders and information necessary for safety and health at work,
  • consultation in relation to the occupational health service,
  • experiences of risk assessment and OSH measures, report and registration of accidents at workand occupational diseases, information from the OSH authority, especially the findings of inspections at employers,
  • the information and counsels of the OSH authority that help employees in exercising their rights and fulfilling their duties related to OSH,
• planning and organising OSH training.

During discussions balanced participation and employees' right to submit proposals shall be ensured. The employer shall be represented by a person with the power to make decisions.